L+M and Invesco partner to buy 2,800 market-rate apartments
Two thirds of the units will be maintained affordable
L+M Development Partners and Invesco have partnered to purchase a 2,800-unit portion of the Putnam portfolio from Brookfield Asset Management and Urban American for $1.2 billion.
Ron Moelis’ L+M made the purchase through its workforce housing fund, a multi-investor development fund to target affordable development, according to the Wall Street Journal.
“We think it’s a significant win for the City of New York and existing residents, and it happens to be completely aligned with the mission of our fund,” said Eben Ellertson, managing director at L+M. “It’s also defensive and more cycle-resistant than conventional executions where you are relying on market forces.”
Two thirds of the apartment units will be income-restricted to low and middle incomes and will receive limited tax abatements from the city. The investors also plan to pursue an agreement with New York State to place the Roosevelt Island apartments under affordable restrictions.
The properties, part of the 4000-unit Putnam Portfolio which went up for sale in March, originally asked $1.5 billion. Marketing materials at the time indicated that the properties could be purchased as individual assets.
L+M and Invesco are buying five of the properties: Roosevelt Landings at 552 Main Street, River Crossing at 1940 First Avenue, the Heritage at 1295 Fifth Avenue, the Miles at 1990 Lexington Avenue and the Parker at 1890 Lexington Avenue. Cushman & Wakefield’s Adam Spies and Doug Harmon negotiated the deal.
The only building they’re not purchasing is 3333 Broadway.
Brookfield purchased a majority stake in the portfolio in 2014 for $1.04 billion.
[WSJ] — Georgia Kromrei