The Real Deal New York

Annaly financed Blackstone’s Caiola portfolio buy

Maryland-based REIT provided nearly-$600M loan for the 24-building deal

September 21, 2015 11:30AM

John Gray Wellington Denahan

From left: Annaly’s Wellington Denahan and Blackstone’s Jonathan Gray

When Shakespeare wrote “Neither a borrower nor a lender be,” he wasn’t arranging to buy 24 Manhattan apartment buildings.

Annaly Capital Management financed the Blackstone Group and Fairstead Capital’s purchase of the 24-building Caiola portfolio, which closed last week, to the tune of $592 million.

The Libor-based floating-rate loan will have a term of five years, and require only interest payments for its full term.
The multifamily building portfolio contains 979 units located throughout Midtown, in Chelsea, Murray Hill and on the Upper East Side, the New York Observer reported.

The deal, for $690 million, was one of the largest in New York this year. Thor Equities’ Joe Sitt had, in January, been in contract to buy the portfolio for nearly $800 million.

Blackstone, America’s biggest private landlord, has more than $92 billion in assets under management. Its latest $15.8 billion global fund is the largest in the company’s history. [NYO]Ariel Stulberg