Brookfield Sells 3333 Broadway to Urban American, MSquared

Brookfield Properties managed to sell a large West Harlem rental complex on its second try, with help from one of its now-former partners at the property.

Brookfield sold 3333 Broadway to Urban American, Alicia Glen’s MSquared and a group of investors for $323.5 million, the Commercial Observer reported. The deal breaks down to more than $271,000 per unit at the 1,193-unit complex.

Urban American is a familiar name at the complex, having been a partner in the investment since 2007. The company is hanging on to its role as property manager after the deal closed before the end of last year.

Glen’s firm comes in as an investor as New York City’s former deputy mayor pursues mixed-income housing and investment opportunities. The five-building complex, located on a double block between West 133rd and West 135th streets, is roughly 50 percent affordable under the city’s Section 8 program.

Glen declined to reveal the ownership breakdown of the investors involved in the acquisition. MSquared is the lead investor among a group that includes Bank of America Community Development Company in the capital stack.

An Eastdil Secured team including Daniel Parker and Gary Phillips negotiated the sale. Citigroup originated $225 million in Freddie Mac financing for the deal.

The buyers intend to activate the complex’s retail spaces, modernize shared spaces and update the lobby. The incoming owners will also renovate individual units when they are vacated but don’t plan to battle lease renewals or force out tenants.

Brookfield put the complex on the market over the summer, hoping to sell for about $350 million, sources told The Real Deal. The listing came two years after Brookfield put the property up for sale with its sights set on a $400 million deal.

Brookfield and Urban American recently spent $60 million on capital improvements, including new elevators, new windows for every apartment, new cogeneration systems and new roofs.

The massive apartment complex was carved out of the 4,000-unit Putnam Portfolio that Brookfield acquired in 2014 for more than $1 billion. Brookfield and Urban American sold the rest of the portfolio to L+M Development Partners and Invesco in 2019 for $1.5 billion.

— Holden Walter-Warner