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Deals & Dealmakers

RXR and Partners Announce $261 Million Preferred Equity Investment For Class-A NYC Multifamily Portfolio

RXR, along with Macquarie Capital Principal Finance and the Qatar Investment Authority through its wholly-owned subsidiary QH RE Asset Company LLC (“QIA”), announced the closing of a $US261MM preferred equity investment in the acquisition of a three-building, 858-unit, $US825MM Class-A New York City multifamily portfolio owned by the late Sheldon Solow.

RXR’s preferred equity investment was used to finance GO Partners, a joint venture between Black Spruce Management and Orbach Affordable Housing Solutions, in the acquisition of the portfolio. Hudson Realty Capital, a leading full-service capital solutions provider, advised on the deal.  Cushman & Wakefield served as the broker for the transaction.

Constructed by the late Sheldon Solow, the buildings – One & Two Sutton Place and One East River Place – include floor-to-ceiling windows, luxury amenities (including doormen, fitness centers, and indoor pools), and oversized units, which are increasingly sought-after with the structural shifts spurred by COVID-19 pandemic.

The three-building portfolio is currently over 96% occupied and located within Manhattan’s Upper East Side, one of the city’s most supply-constrained and in-demand residential neighborhoods.

“With decades of experience in structuring finance investments, RXR was able to provide an efficient financing solution for GO Partners in an accelerated timeline during a period where financing for such acquisitions and developments has been increasingly difficult to obtain,” said Russell Young, Executive Vice President of RXR’s Investment Management Group.

“Macquarie Capital Principal Finance acted nimbly alongside RXR to structure a creative financing package, despite challenging market conditions. We look forward to seeking more opportunities to deploy preferred equity consistent with our strategy of investing in best-in-class assets,” said Thomas Dore, Vice President, Macquarie Capital Principal Finance.

“We were pleased to help facilitate a complicated closing process on behalf of RXR and its lending partners. Our deep market experience and hands-on approach is extremely valuable in market conditions such as these, when it is increasingly difficult to get transactions across the finish line,” said Perry Freitas, Managing Director, Hudson Realty Capital. 

“The Solow Portfolio consists of some of Manhattan’s most sought-after assets and has been long treasured by the investment community.” said Adam Spies, Chairman of Cushman & Wakefield.

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