Brookfield Exits 3333 Broadway in $324M Deal With Urban American and MSquared

Brookfield Properties has exited its position in the multifamily building at 3333 Broadway, after marketing the property for sale in the summer, Commercial Observer has learned. 

Urban American, Brookfield’s partner in the West Harlem investment, has now teamed with Alicia Glen’s MSquared and a consortium of investors to fully acquire the 1,193-unit property for $323.5 million, sources said.

Eastdil Secured’s Daniel Parker, Gary Phillips and Will Silverman negotiated the deal, which also acts as a recapitalization since Urban American has held a stake in the property since 2007. 

Built in 1975, 3333 Broadway comprises five connected high-rise buildings between West 133rd Street and West 135th Street. Roughly half of its units are affordable under the New York City Housing Authority’s Section 8 program. 

Glen told CO that the deal made perfect sense for MSquared since 3333 Broadway — with its split between affordable and market-rate units — aligns with MSquared’s strategy. The former New York City deputy mayor for housing and economic development launched MSquared in 2020 with a focus on mixed-income housing development and investment.

“3333 Broadway, in some ways, is the most emblematic building of our philosophy,” Glen said. “It also has a big range in incomes that it serves. So it’s in many ways a microcosm of what we think makes a really healthy building and neighborhood and mix of families. 

“When we had the opportunity to work with Urban American to recapitalize the building, it really just spoke to me,” Glen added.

The acquisition closed Dec. 27, making it one of the largest affordable housing deals nationally to cross the finish line in 2024.

Eastdil and Brookfield declined to comment. 

Urban American will continue to manage the property after the deal, and the new owners plan to modernize its shared spaces and lobby along with “activating” the building’s retail spaces, Glen said.

Glen added that they also will renovate individual units as they “naturally roll over,” with no plans to not renew leases or hike rent prices to get tenants out.

“It’s such a big building, so obviously there’ll be some natural turnover,” Glen said. “A lot of people might be looking to not renew leases or jack up the rents [on tenants]. That’s not [the business plan] at all.”

Glen declined to provide the ownership breakdown in the deal or the full list of lenders involved. She did say that MSquared is the lead investor and Bank of America Community Development Company is in the capital stack.

“3333 Broadway exemplifies how building owners can provide quality, energy-efficient affordable housing to residents in the Manhattanville neighborhood and throughout New York,” Brian Heide, a Bank of America community development banking executive, told CO. “Bank of America Community Development Company’s investment is a great example of how we can support the need for affordable and middle-income housing in the communities where we live and work. We are proud to bring the building into its next generation of ownership with Urban American and MSquared.”

The new owners also secured $225 million in Freddie Mac financing originated by Citigroup for the deal. Citi did not immediately respond to a request for comment.

Brookfield and Urban American put the property up for sale in June, The Real Deal reported. At the time, the firm was seeking $350 million, having unsuccessfully sought $400 million for it 20 months earlier. The property was part of the Putnam Portfolio, acquired by Brookfield for $1.04 billion in 2014. The firm later sold off all of the portfolio with the exception of 3333 Broadway in 2019, TRD reported.

Now, the property has new ownership, and an influx of new capital readying it for its next chapter.  

In total, between the 2019 disposition and the sale of 3333 Broadway last month, the Putnam Portfolio sold for $1.48 billion.

Cathy Cunningham can be reached at ccunningham@commercialobserver.com. Nicholas Rizzi can be reached at nrizzi@commercialobserver.com.