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.
