Blackstone Acquires Stake in 55 Suffolk From Goldman Sachs for $171M
Deal coincides with $201M loan Wells Fargo provides to refinance property.
By Andrew Coen May 23, 2024 11:00 am
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Blackstone (BX) has acquired the minority partnership of Gotham Organization’s newly built residential tower in Manhattan’s Lower East Side from Goldman Sachs (GS) for $171.4 million, property records show.
The transaction, through which Blackstone will become a joint venture partner in Gotham Organization’s recently completed 378-unit The Suffolk, is being executed through Blackstone’s new $2.6 billion real estate secondaries fund, Strategic Partners Real Estate VIII, launched in September 2023.
Gotham Organization and Goldman Sachs Asset Management’s Urban Investment Group secured $162.4 million of construction financing from Wells Fargo and U.S. Bank in late 2020 to proceed with the 30-story building at 55 Suffolk Street, with both also making separate $70 million equity commitments. The project is part of the Broome Street Development that will also house the future headquarters for the Chinese-American Planning Council.
Blackstone’s acquisition of Goldman Sachs’ minority stake in The Suffolk coincides with a $200.5 million loan Gotham Organization received this month from Wells Fargo to refinance the asset, according to property records.
The project sets aside 25 percent of the apartments as affordable housing. The building, which was designed by Dattner Architects and JG Neukomm Architecture, has amenities that include a fitness center, yoga room and rooftop pool.
Officials at Blackstone and Wells Fargo did not immediately return a request for comment. Representatives for Goldman Sachs and Gotham Organization declined to comment.
Andrew Coen can be reached at acoen@commercialobserver.com
