L+M, Invesco close on Putnam portfolio with $823M in Wells Fargo financing

Companies had partnered to buy portion of portfolio for $1.2B in July

New York /
Oct.October 24, 2019 04:04 PM
From left: Brookfield's Ric Clark, 3333 Broadway and L+M's Ron Moelis (Credit: Brookfield, L+M, StreetEasy)

From left: Brookfield’s Ric Clark, 3333 Broadway and L+M’s Ron Moelis (Credit: Brookfield, L+M, StreetEasy)

L+M Development Partners and Invesco Real Estate have closed on their purchase of Brookfield’s Putnam portfolio thanks to about $823 million in financing from Wells Fargo, according to sources familiar with the deal.

“The purchase of this portfolio of properties will help preserve the affordability of hundreds of rental units in New York City,” Wells Fargo’s head of government-sponsored enterprise Mark Beisler said in a statement.

The money is an agency loan with Fannie Mae and covers four of the five properties that L+M and Invesco are buying.

Doug Harmon, Adam Spies, Josh King and Adam Doneger of Cushman & Wakefield brokered the sale. Cushman’s Gideon Gil arranged the debt.

Clockwise from top left: 1295 Fifth Avenue in East Harlem, 1890 Lexington Avenue in East Harlem, 1940 First Avenue on the Upper East Side and 552 Main Street on Roosevelt Island (Credit: Google Maps)

Clockwise from top left: 1295 Fifth Avenue in East Harlem, 1890 Lexington Avenue in East Harlem, 1940 First Avenue on the Upper East Side and 552 Main Street on Roosevelt Island (Credit: Google Maps)

Invesco and L&M purchased the portfolio from Brookfield, a global asset manager that had put it up for sale in March. It has about 4,000 units across six Manhattan properties: 3333 Broadway near Columbia University, 1295 Fifth Avenue in East Harlem, 1990 and 1890 Lexington Avenue in East Harlem, 1940 First Avenue on the Upper East Side and 552 Main Street on Roosevelt Island.

Urban American joined with investors to buy the portfolio in 2007 for $938 million and sold a majority stake to Brookfield in 2014 for $1.04 billion. L&M and Invesco partnered to buy a 2,800-unit portion of the portfolio in July for $1.2 billion, consisting of every building except the one at 3333 Broadway. The financing package covers all of the properties except the Roosevelt Island one.

Brookfield and L+M declined to comment on the sale. Invesco did not immediately respond to a request for comment.

Rich Bockmann contributed reporting.


Related Articles

arrow_forward_ios
Wells Fargo CEO Charlie Scharf (Getty, iStock)
Wells Fargo hit with $250M fine, new restrictions over mortgage lending practices
Wells Fargo hit with $250M fine, new restrictions over mortgage lending practices
Brookfield Asset Management CEO Bruce Flatt (Brookfield, iStock)
Brookfield expects to make $25B from real estate portfolio
Brookfield expects to make $25B from real estate portfolio
Brookfield Reinsurance CEO Sachin Shah and Brookfield Property Partners CEO Brian Kingston (Brookfield)
Brookfield bets big on insurance as real estate investments ebb
Brookfield bets big on insurance as real estate investments ebb
Wells Fargo, BlackRock join other firms in delaying office returns
Wells Fargo, BlackRock, Amazon join others in delaying office returns
Wells Fargo, BlackRock, Amazon join others in delaying office returns
1301 Sixth Avenue and Paramount Group's Albert Behler (Google Maps, Getty)
Wells, Morgan Stanley to provide Paramount’s $860M refi at 1301 Sixth Avenue
Wells, Morgan Stanley to provide Paramount’s $860M refi at 1301 Sixth Avenue
TF Cornerstone president Fredrick Elghanayan and 595 Dean Street (TF Cornerstone, rendering via MOSO Studio)
TF Cornerstone scores $385M loan for Prospect Heights apartment towers
TF Cornerstone scores $385M loan for Prospect Heights apartment towers
Brookfield CEO Bruce Flatt with Sunrise at Mill Basin at 5905 Strickland Avenue (left) and Sunrise at Sheepshead Bay site at 2211 Emmons Avenue (Sunrise, Google Maps,  Todd France/Wikimedia)
Brookfield confirmed as buyer behind $664M Sunrise Senior Living deal
Brookfield confirmed as buyer behind $664M Sunrise Senior Living deal
Mill Basin Senior Living Center and Brookfield CEO Bruce Flatt (Brookfield)
Brookfield pays $31M for Brooklyn senior living facility
Brookfield pays $31M for Brooklyn senior living facility
arrow_forward_ios

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

Loading...