Josh Gotlib’s Black Spruce Management has struck a deal with Isaac Chetrit’s AB & Sons to recap half of his firm’s Manhattan multifamily portfolio.
AB & Sons has paid $200 million for a 50 percent stake in the 1,800-unit portfolio of workforce-housing buildings that Black Spruce has accumulated over the past 12 years.
The deal includes 950 units in buildings situated primarily in Hell’s Kitchen and Morningside Heights.
Gotlib tapped Cushman & Wakefield rainmakers Adam Spies, Doug Harmon, Adam Doneger, Josh King, Marcella Fasulo, Avery Silverstein and Michael Collins earlier this year to shop the entire portfolio and offer a 49 to 90 percent stake at a valuation north of $700 million.
Cushman & Wakefield continues to market the remainder of the portfolio of multifamily properties concentrated in Upper Manhattan. The buildings receive a tax abatement under NYC’s Article XI program, which offers 30- to 40-year property tax exemptions for projects that are at least two-thirds affordable.
Black Spruce Management acquired the portfolio of 14 Hell’s Kitchen walk-up rental buildings for $110 million in 2016. The properties are clustered on West 49th Street, between Eighth and Ninth avenues, and contain 273 rental apartments, the majority of them market-rate. The addresses are 308-310 and 318-340 West 49th Street.