Brookfield Asset Management is buying the remaining stake of Waterside Plaza in Kips Bay from former New York Lieutenant Governor Richard Ravitch.
The real estate arm of Brookfield Asset Management first purchased a stake in the four-tower complex along FDR Drive and East 25th Street in 2018. Though the size of the stake was undisclosed, sources at the time told TRD that the deal valued the complex at about $650 million.
In addition to taking full ownership of the mixed-use property, which Ravitch developed in the 1970s, Brookfield said it is also taking over management.
“Waterside Plaza is a uniquely-situated complex and the home to a vibrant community of residents. Richard Ravitch and his team, who developed Waterside Plaza, managed it with excellence, and we intend to do the same,” said a Brookfield spokesperson.
Brookfield did not disclose the price of the transaction. Ravitch did not immediately respond to a request to comment.
A source close to the deal said the property is worth closer to $600 million. The deal did not include any additional financing, according to the source.
Doug Harmon and Adam Spies of Cushman & Wakefield brokered the deal.
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Ravitch, the former New York lieutenant governor and head of the Metropolitan Transportation Association, built the complex with nearly 1,471 apartments in 1974. It was built using Mitchell-Lama affordable financing, but about 20 years ago Ravitch exited the program. The majority of the units are now free market.
Ravitch previously said Waterside Plaza was designed to be “the most densely integrated, dynamically designed development in the whole city.”
The city and Ravitch struck a deal in August 2018 to preserve the affordability of 325 units for the next 75 years, according to local city council member Keith Powers. That agreement was part of a plan to extend the ground lease for 99 years, which remains ongoing under the city’s uniform land use review process. Powers told TRD that the deal will remain in place under Brookfield’s ownership.
“It’s not only still in place, but it’s more important,” because of the transaction, Powers said.
The joint venture landed about $380 million in debt from MetLife in 2018, sources said.
Brookfield is among the city’s most active buyers of office and residential real estate. The Toronto-based asset manager said it hopes to generate $25 billion from its real estate portfolio. The company recently paid $6.5 billion to buy out the outstanding shares of its real estate arm, Brookfield Property Partners.