Tennessee pension fund joins A&E on Sutton Place apartments

Douglas Eisenberg’s firm closed on $135M purchase from SL Green

New York /
Sep.September 22, 2021 03:30 PM
A&E’s Douglas Eisenberg and the apartments (Stonehenge 57)

A&E’s Douglas Eisenberg and the apartments (Stonehenge 57)

A&E Real Estate, one of New York’s biggest landlords, brought in Tennessee’s state pension fund to close on the $133.5 million purchase of a Sutton Place apartment building.

The $56 billion Tennessee Consolidated Retirement System entered a joint venture with Douglas Eisenberg and John Arrillaga Jr.’s A&E to buy 400 East 57th Street from SL Green Realty, a spokesperson for A&E said.

A&E went into contract on the 263-unit building in April, when the city’s rental market looked much different than now. It was only several weeks later that Mayor Bill de Blasio said the city planned to fully reopen by July and rental activity started to pick back up.

SL Green, meantime, is unloading one property after another to finance a stock-buyback program.

A&E’s Eisenberg said in an emailed statement that the $133.5 million purchase price was “reflective of a time of uncertainty.” The price works out to just shy of $400,000 per unit. Apollo Commercial Real Estate Finance provided a $96.5 million loan.

The Tennessee fund owns real estate valued at $4.3 billion, according to its most recent report. That’s about 9 percent of its $52.6 billion of assets, slightly lower than its target real estate allocation of 10 percent.

SL Green hired an Ackman-Ziff team of Marc Sznajderman, Andrew Sasson and Chad Sinsheimer to market 400 East 57th Street, which the REIT acquired in 2011 as part of a seven-building it bought with Ofer Yardeni’s Stonehenge Properties.

The rent-stabilized multifamily market suffered a blow in 2019 when the state changed rent laws limiting the amount landlords could raise rents on regulated apartments. SL Green has since been selling its apartment holdings. A&E also bought another building from the REIT earlier this year, paying $62 million for 400 East 58th Street.





    Related Articles

    arrow_forward_ios
    The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)
    SL Green puts Daily News building up for sale
    SL Green puts Daily News building up for sale
    SL Green snags private-equity firm at One Vanderbilt
    SL Green snags private-equity firm at One Vanderbilt
    SL Green snags private-equity firm at One Vanderbilt
    SL Green’s locks in big bank lease at Hudson Yards redevelopment site
    SL Green’s locks in big bank lease at
    Hudson Yards redevelopment site
    SL Green’s locks in big bank lease at
    Hudson Yards redevelopment site
    SL Green buys stake in 1601 Broadway for $121M
    SL Green buys stake in 1601 Broadway for $121M
    SL Green buys stake in 1601 Broadway for $121M
    Flight to quality in office real estate leaves trophy buildings the only winners
    Flight to quality in office real estate leaves trophy buildings the only winners
    Flight to quality in office real estate leaves trophy buildings the only winners
    One Vanderbilt, Stone Ridge CEO Ross Stevens, SL Green CEO Marc Holliday (SLG, YouTube via NYDIG)
    Finance firm leases 100K SF at SL Green’s One Vanderbilt
    Finance firm leases 100K SF at SL Green’s One Vanderbilt
    Mintz, Levin takes 101K SF at SL Green’s 919 Third Avenue
    Mintz, Levin takes 101K SF at SL Green’s 919 Third Avenue
    Mintz, Levin takes 101K SF at SL Green’s 919 Third Avenue
    SL Green CEO Marc Holliday (Getty, SL Green)
    “The ink on the leases” shows tenants still want office space: SL Green CEO
    “The ink on the leases” shows tenants still want office space: SL Green CEO
    arrow_forward_ios

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

    Loading...