A&E Real Estate buys Riverton housing complex for $201M

The new owner gets roughly $100M in tax breaks in the deal

TRD New York /
Dec.December 17, 2015 09:01 AM

A&E Real Estate Holdings has cut a $201 million deal with the city to buy a Harlem housing complex that will keep nearly 1,000 affordable housing units stabilized in exchange for hefty tax breaks.

Douglas Eisenberg’s firm bought the Riverton, which consists of 1,229 apartments across seven buildings, and agreed to keep 975 units affordable for 30 years, the New York Times reported. In exchange, the new owner will receive just over $100 million in tax breaks from the city. Eisenberg and his partners have also agreed to make $40 million in capital improvements to the complex.

The former owner, Larry Gluck’s Stellar Management, purchased the complex in 2005 in hopes of bringing in higher-paying tenants. But Stellar defaulted on its $225 million mortgage and its lenders foreclosed. CWCapital, which controlled Stuyvesant Town after Tishman Speyer defaulted, took over the complex in a 2010 auction.

The purchase is the latest in a series of multifamily purchases made by Eisenberg. In October, his firm bought a six-story elevator building in Jackson Heights for $22 million. The investment firm also scooped up 32 buildings across three borough from the Dermot Company in February for $360 million.

Mayor Bill de Blasio and other city officials are touting the Riverton deal as an important step in preserving affordable housing in the city and warding off gentrification in the neighborhood.

Though significant, the tax break falls short of the sum recently provided to the Blackstone Group and Ivanhoe Cambridge, which received $225 million worth of benefits for its purchase of Stuyvesant Town from CW Capital. The new Stuy Town owners received a $144 million acquisition loan, which carries no interest over 20 years, essentially amounting to a subsidy. The city also offered a $77 million mortgage tax waiver. [NYT] — Kathryn Brenzel


Related Articles

arrow_forward_ios
A view of the Wise Towers at 117 West 90th Street (Google Maps)

Tension rises as public housing gets private management

Tension rises as public housing gets private management
New York City council member Margarate Chin, Mayor Bill de Blasio and council member Carlina Rivera (Getty; iStock)

Why the Soho rezoning will pass — and Gowanus, too

Why the Soho rezoning will pass — and Gowanus, too
City Planning commissioner Marisa Lago and Governors Island (Getty)

Governors Island rezoning process is underway

Governors Island rezoning process is underway
Mayor Bill de Blasio (Getty, iStock)

The battle to rezone Soho is just beginning

The battle to rezone Soho is just beginning
Mayor Bill de Blasio (iStock; Getty)

Soho to be rezoned: de Blasio

Soho to be rezoned: de Blasio
Gov. Andrew Cuomo (Getty, iStock)

Covid hotspots must lock down tomorrow: Cuomo

Covid hotspots must lock down tomorrow: Cuomo
Gov. Andrew Cuomo (Getty, iStock)

Cuomo to redraw city’s shutdown map

Cuomo to redraw city’s shutdown map
Economic Development Corporation CEO James Patchett (Getty; iStock)

EDC’s $58M in Times Square rent mostly sunk into ferries

EDC’s $58M in Times Square rent mostly sunk into ferries
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...