Carlyle takes majority stake in Ritz Plaza rental building for $251M

Deutsche Bank loans $235M for deal

New York /
May.May 10, 2019 09:52 AM
235 West 48th Street and Carlyle Group managing director Jason Hart (Credit: Google Maps and Carlyle Group)

235 West 48th Street and Carlyle Group managing director Jason Hart (Credit: Google Maps and Carlyle Group)

An affiliate of the Carlyle Group has closed on the majority stake in a 43-story Midtown rental tower for about $251 million, property records show.

The move brings the firm together with long-time owner Stonehenge NYC in a joint venture to recapitalize the Ritz Plaza, a 1980s-era, 479-unit complex, with a $235 million first mortgage from Deutsche Bank, Carlyle added in a press release.

Carlyle Property Investors, the real estate fund sponsored by the private equity firm, acquired a roughly two-thirds stake in the tower at 235 West 48th Street, a 1980s-era, 479-unit complex, from entities tied to Ivanhoe Cambridge and SL Green Realty, property records show.

Meanwhile, Ofer Yardeni’s Stonehenge will hold the rest of the interest in the building, according to Real Estate Alert, which first reported that Carlyle agreed to the transaction last month. Ivanhoe and SL Green declined to comment.

The deal values the building at about $373 million and $779,000 per door.

Carlyle and Stonehenge plan to invest capital to renovate the building’s apartments and common areas.

Deutsche Bank’s financing was arranged by Hodges Ward Elliott, and Ackman Ziff advised Carlyle on the deal.

“Our investment in The Ritz is consistent with our strategy of owning a high-quality portfolio of rental apartments in the United States, and particularly in the New York market, which offers relative stability and a high potential for growth,” said Jason Hart, managing director of Carlyle, in a statement.

Available apartments at the tower have rents that range from $3,715 for a three-bedroom unit to $6,111 for a four-bedroom pad, according to StreetEasy.

Several years ago, David Bistricer’s Clipper Equity had signed a “soft contract” to buy the building for around $400 million from Stonehenge NYC, which has held and managed the building since 1996. But Clipper Equity later backed out of the deal.

The latest sale comes about a year after Stonehenge, SL Green and Ivanhoe sold another multifamily building — Stonehenge Village in the Upper West Side — for $237 million to A&E Real Estate Holdings. And just before that, Stonehenge and SL Green parted with a six-story building at 1274 Fifth Avenue, selling it to Akelius Real Estate Management for $44.1 million.


Related Articles

arrow_forward_ios
Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)
Here’s what the $10M-$30M NYC investment sales market looked like last week
Here’s what the $10M-$30M NYC investment sales market looked like last week
53 Sonrise Place in Fellsmere, FL and Starwood Capital Group chairman Barry Sternlicht (Google Maps, Illustration by The Real Deal with Getty)
Starwood snaps up Florida affordable housing portfolio
Starwood snaps up Florida affordable housing portfolio
Carpenter & Company's Richard Friedman and 2 Canal Street in New Orleans (Carpenter & Company, Google Maps)
New Orleans Four Seasons lands $315M loan from Madison Realty Capital
New Orleans Four Seasons lands $315M loan from Madison Realty Capital
HUBB’s John McCarthy, Greystone's Thomas Ryan and 223-225 4th Avenue (Google Maps, Greystone, Getty)
HUBB NYC continues 421a spending spree, buying Park Slope building
HUBB NYC continues 421a spending spree, buying Park Slope building
120 East 39th Street (Hotels, Getty)
Short-term rental company taking over Midtown hotel
Short-term rental company taking over Midtown hotel
One Soho Square with Stellar Management’s Larry Gluck and Yotpo CEO Tomer Tagrin (LoopNet, Twitter, Gluck Family Foundation)
Yotpo inks 30K sf sublease at Stellar’s One Soho Square
Yotpo inks 30K sf sublease at Stellar’s One Soho Square
From left: Landlord Steve Croman and White Horse Tavern owner Eytan Sugarman along with the White Horse Tavern at 567 Hudson Street (Getty Images, Google Maps, Instagram/boyfromnewyorkcity)
Croman sues White Horse Tavern owner for $650K back rent
Croman sues White Horse Tavern owner for $650K back rent
Blackstone's Stephen Schwarzman and 8 Spruce Street (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images and Twitter/AAsArchitecture)
Blackstone’s 8 Spruce sues tenant over alleged pop-up restaurant
Blackstone’s 8 Spruce sues tenant over alleged pop-up restaurant
arrow_forward_ios

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

Loading...