Blackstone lends on A&E’s seven-building Queens buy

PE firm provides $57M up front and $7M over time

New York /
Jul.July 05, 2017 04:30 PM

Blackstone Group backed fellow real estate giant A&E Real Estate Holdings’ $82.8 million purchase of a seven-building Queens multifamily portfolio with a loan to cover the acquisition and renovation costs, sources told The Real Deal.

A&E closed late last week on the deal, which was for 343 rental apartments across a total of 272,500 square feet. The firm, led by Douglas Eisenberg and John Arrillaga Jr.,  entered contract this spring, as TRD reported.

Blackstone TRData LogoTINY provided $57 million in acquisition financing up front, and agreed to lend $7 million for building upgrades over time, sources said. The private equity firm occasionally partners with A&E or lends on its purchases.

Rosewood Realty Group’s Aaron Jungreis represented the seller in the deal. Representatives of A&E, Blackstone and Rosewood declined to comment, and an Ares spokesperson could not be reached.

Over the past three years, A&E has chipped away at the seller Ares Management’s New York City multifamily holdings, having bought at least 40 of their buildings.

AREA Property Partners and Vantage Properties, two large private equity-backed shops active in the mid-2000s, acquired the seven buildings for a combined $54 million in 2008, property records show. In 2011, AREA bought Vantage out of its stake, and then, in 2013, Ares, a Los Angeles-based global alternative asset manager, acquired AREA Property Partners.

The addresses are 132-70 Sanford Avenue and 151-10 35th Avenue in Flushing; 41-41 44th Street and 47-07 39th Street in Sunnyside; 40-11 – 40-19 79th Street and 42-29 Judge Street in Elmhurst; and 22-73 41st Street in Astoria.

(To view more of A&E Real Estate Holdings’ commercial sales transactions, click here)

(To view more of Blackstone Group’s financing transactions, click here)


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Hudson Meridian Construction Group founder Bill Cote and a rendering of the Science Park Apartments planned at 201 Munson in New Haven (Hudson Meridian Construction Group)
Breakthrough for beleaguered New Haven project
Breakthrough for beleaguered New Haven project
From left: Scott Rechler and 5 Times Square; Marc Holliday, Stephen Ross and 280 Park Avenue (Getty Images, Eden, Janine and Jim from New York City - via Wikimedia Commons/Photo Illustration by Steven Dilakian for The Real Deal)
Swell of maturing debt pressures office owners
Swell of maturing debt pressures office owners
(photos by Joe Lovinger/The Real Deal)
Day 2 of ICSC: Retailers button up to network, prep for uncertain future
Day 2 of ICSC: Retailers button up to network, prep for uncertain future
Boston Properties' Hilary Spann and Eldridge CEO Todd Boehly in front of 767 Fifth Avenue (Boston Properties, Eldridge, Google Maps)
Firm ditches Park Ave for entire floor of GM Building
Firm ditches Park Ave for entire floor of GM Building
Adam Neumann with 515 West Avenue (Wikipedia, Realtor, iStock)
No buzz, but Adam Neumann will take the $293M
No buzz, but Adam Neumann will take the $293M
Photo illustration depicting landlords being outearned by their lenders (iStock)
More multifamily landlords are making less than their lenders
More multifamily landlords are making less than their lenders
arrow_forward_ios

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

Loading...