The Real Deal New York

Brookfield taps Chinese, NY banks for $1B portfolio buy

Urban American maintains stake in 4,000-NYC apartment package

November 12, 2014 05:47PM
By Adam Pincus

Clark-3333-Heritage-Eisenberg

From left: Ric Clark, 3333 Broadway, the Heritage at 1295 Fifth Avenue and Philip Eisenberg

UPDATED, 1:12 p.m., Dec. 1: Brookfield Property Partners and partner Urban American Management tapped the Bank of China and New York Community Bank to finance the $1.04 billion purchase of nearly 4,000 apartments in Upper Manhattan and Roosevelt Island, property records filed with the city today show.

The purchase price was about $10 million below the all-in capitalization costs of $1.05 billion, as of late 2012, according to figures obtained by The Real Deal. Meridian Capital Group arranged the financing.

TRD first reported in March that Brookfield, led by Ric Clark, was planning to buy the portfolio,  including the 1,193-unit 3333 Broadway. Urban American, the New Jersey-based firm led by Philip Eisenberg, which was the manager of the prior ownership venture that included City Investment Fund and others, maintains a stake in this portfolio. Brookfield inked a contract in July and closed on the deal October 22.

Not all the transfer documents substantiating the $1.04 billion price have appeared in public records. That price tag was reported by the Roosevelt Islander blog, which published a document from the New York State Roosevelt Island Operating Corporation providing the total sale price for the transaction.

The state agency records show that Urban American has a 7 percent stake in the new joint venture with Brookfield, although a source familiar with the deal said the figure was smaller.

Brookfield and Urban American did not immediately respond to a request for comment.

The Bank of China provided a total of $234 million in debt, and New York Community Bank provided $507 million. The total of $741 million represents a decrease of about 7.4 percent from the prior amount of first mortgage debt provided by Fannie Mae, which totaled $800 million.

The properties, formerly known as the Putnam portfolio, also include the 1,003-unit Roosevelt Landings at 510-580 Main Street on Roosevelt Island; the 761-unit River Crossing at 1940-1966 First Avenue and 420 East 102nd Street; the 600-unit Heritage at 1295 Fifth Avenue, 1309 Fifth Avenue and 1660 Madison Avenue; and the Miles and the Parker at 1890 Lexington Avenue and 1990 Lexington Avenue, with a total of 405 units. Urban American and its partners purchased the collection of buildings for about $938 million in 2007.

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