Home News Goldman Sachs Buying Brooklyn Heights Rental

Goldman Sachs Buying Brooklyn Heights Rental

by admin
0 comment

Goldman Sachs’ David Solomon and 15 Bridge Park Drive (Streeteasy, Getty)

Goldman Sachs real estate funds are back in New York with a $90 million deal to buy a rental building developed as part of Brooklyn Bridge Park.

The Real Deal has learned that the investment bank’s asset management department has entered into an agreement to purchase the 140-unit The Landing building from Robert Levine’s RAL Companies and China Vanke.

The deal is the latest example of investors seeking New York rental properties with cash flow, and multifamily investment has surged as buyers largely avoid older, stable-rent buildings. doing.

The 15-story building at 15 Bridge Park Drive has an unusually large rent limit factor of 70% instead of the usual 30%, but benefits from 35 years of tax relief under the PILOT tax relief program. Effective tax breaks make this property more like a free market building than a rent stable one.

Representatives for Goldman Sachs and RAL Companies did not immediately respond to requests for comment.

Of the 100 rent-restricted units, 50% are set to rent at 165% of the median income in the area, according to marketing materials from Cushman & Wakefield, whose sale was brokered by a team led by Adam Spies and Adam Doneger.

The Brooklyn Bridge Park Corporation, the nonprofit that oversees the 85-acre park, selected Levine’s developer through an RFP process in 2015 to Develop two parcels adjacent to green space To help fund the park.

RAL’s bid, which included an upfront payment of $106 million, outpaced offers from 13 other developers. In addition to leasing 140 units, RAL has also developed an adjacent 126-unit Key Tower condominium building.

The developer completed the building in March 2020.

Goldman returned to New York real estate two years ago as part of the relaunch of its once-dominant investment program. The company paid him $100 million in 2020 to purchase his 19-story 1 Flatbush Avenue apartment in downtown Brooklyn.

It was Goldman’s first acquisition in New York since it started its real estate fund business before suffering heavy losses during the Great Financial Crisis in the 1990s and early 2000s.

Most recently, Goldman announced a funding round $3.5 billion The latest real estate fund announced in April will focus on core plus and value added opportunities in logistics, residential and office buildings.

You may also like