Meridian Capital Group arranged $737 million in acquisition for Brookfield Property Partners to fund the purchase of The Putnam Portfolio, a six-property multifamily portfolio with 4,000 units in Upper Manhattan and on Roosevelt Island.
Brookfield is paying a total of $1.04 billion for the portfolio, which encompasses almost 4,000 units in Upper Manhattan and on Roosevelt Island. The deal closed in late October.
Urban American, already the managing partner for the previous ownership team, retains a share in the portfolio and will be Brookfield’s operating partner
To obtain the significant level of proceeds required for the acquisition, the debt was sourced between New York Community Bank and Bank of China in six separate mortgages.
This transaction was negotiated by Meridian Capital Group senior managing director Abe Hirsch, managing director Zev Karpel and vice president Akiva Friend, who are all based in the company’s New York City headquarters.
The Putnam Portfolio is composed of six properties totaling 24 buildings and 3,962 units.
These assets include: 3333 Broadway, which features 1,193 apartments, three commercial units and 380 parking spaces; Roosevelt Landings located at 510-580 Main Street, on Roosevelt Island, which features 1,003 apartments; River Crossing located at 1940 First Avenue which features 761 apartments, 11 commercial spaces and 271 parking spaces; The Heritage located at 1295-1309 Fifth Avenue which features 600 apartments, three commercial units and 160 parking spaces and a development site; The Miles located at 1990 Lexington Avenue which features 341 apartments, three commercial units and 21 parking spaces; and The Parker located at 1890 Lexington Avenue which features 64 apartments and 18 parking spaces.
The partners have planned a significant renovation program for these assets that follows a large capital improvement project undertaken by the former ownership. Urban American retained an interest in the assets and remains as day-to-day property manager.
“In order to execute a financing assignment of this magnitude for a premier portfolio, Meridian worked closely with the exceptional sponsor as well as the thoughtful and creative teams at New York Community Bank and Bank of China to manage the approval process across several city agencies,” said Hirsch.
“The success of this transaction not only lies in the strength and ability of the sponsorship to execute their value-add business plan, but also in the tremendous effort and teamwork of all those involved on the lending side,” he added.