Latest news with #SteinerNYC
Forbes
25-04-2025
- Business
- Forbes
Inside The Surge: Why Free Market Multifamily Is Winning In NYC
Residential towers in Downtown Brooklyn - the area has seen a surge in new high rise residential ... More buildings in the past few years with more under construction. (Photo) Free market buildings continued to dominate New York City's multifamily market in Q1 2025 with the sale of these assets accounting for 88% of the city's $2.21 billion in dollar volume, the highest share on record and up from 63% in 2024, Ariel Property Advisors' research shows. Multifamily sales activity was largely concentrated in high-income neighborhoods in prime Brooklyn and Manhattan below 96th Street with a focus on buildings that had fewer than 25% rent-stabilized units or benefited from a 421a tax exemption. Brooklyn led all submarkets in Q1 2025 with nearly half of New York City's total multifamily dollar volume. Year-over-year, the borough's dollar volume jumped 138% to $1.06 billion, and transactions rose 9% to 139. The majority (96%) of the dollar volume came from free market sales, and the borough saw four of the city's top five free market deals, all above $50 million. The majority (96%) of the multifamily dollar volume in Brooklyn in Q1 2025 came from the sale of ... More free market buildings. In one significant transaction, Steiner NYC bought back the 62% stake in 333 Schermerhorn Street in Downtown Brooklyn from JP Morgan for $259.5 million—$6.5 million more than its 2019 sale price—as part of a $420 million recapitalization. Another noteworthy sale was a 188-unit rental building at 395 Leonard Street in Williamsburg, acquired by Pacific Urban Investors for $127.5 million. Also, Michael and Edward Ostad of Flatiron Realty purchased the Pintchik Brooklyn Portfolio comprising 26 buildings along Flatbush Avenue and adjacent side streets in Prospect Heights and Park Slope for $102.5 million. In Manhattan below 96th Street, multifamily sales totaled $868.51 million, a 36% year-over-year increase, across 45 transactions. Of the dollar volume, 92% of the sales were for predominantly free market buildings. Of the multifamily dollar volume in Manhattan in Q1 2025, 92% of the sales were for predominantly ... More free market buildings. Notably, Ares Management acquired a 75% interest from Mitsui Fudosan America in select tax lots within 525 W 52nd Street for $202.2 million. The transaction encompasses the market-rate condominium portion of the property, which includes 313 residential units benefiting from a 421a tax exemption, and a 1,678-square-foot retail space. The deal implies a total valuation of approximately $270 million for the assets. Additionally, A&E Real Estate acquired a 22-story, 179-unit apartment building at 501 East 87th Street for $116.5 million. View over Yorkville and Upper East Side, Manhattan. A&E Real Estate acquired a 22-story, ... More 179-unit apartment building at 501 East 87th Street for $116.5 million. The first quarter transactions in Brooklyn and Manhattan signal robust investor confidence in free market multifamily, driven by the appeal of assets with minimal regulatory constraints and the city's persistent housing shortage. The major transactions indicate several key trends: Jason Hart, Managing Director, The Carlyle Group, summed up his firm's interest in the residential rental market in a 2024 article in PERE, "We're leaning into multifamily now because the fundamentals are strong and the dislocation is creating real opportunity. Pricing is adjusting, but demand isn't going anywhere." Carlyle has aggressively purchased both small and large multifamily properties in New York City in recent years. The recent transactions demonstrate strong investor demand, which is closely linked to the distinctive attributes of New York City's free market multifamily sector. Free market multifamily buildings have minimal to no rent restrictions and attract a diverse range of investors including institutions, private clients, and international capital. This heightened interest stems from several key factors: The free market multifamily landscape in New York City comprises three primary categories: Institutional investor The Carlyle Group has acquired a large portfolio of free market walk-up ... More buildings in Brooklyn. Q1 2025 investment sales figures highlight the significant role of the free-market segment in the multifamily market in Manhattan below 96th Street and Brooklyn, demonstrating the continued confidence investors have in this asset class in prime locations. To review Ariel Property Advisors' full Q1 2025 Multifamily Quarter in Review New York report, which includes data on all submarkets, please click here.
Yahoo
13-03-2025
- Business
- Yahoo
Walker & Dunlop Advises on $420 Million Recapitalization of Trophy Brooklyn Rental Tower, Hub
BETHESDA, Md., March 13, 2025--(BUSINESS WIRE)--Walker & Dunlop, Inc. announced today the successful $420 million recapitalization of Hub, a trophy 750-unit high-rise multifamily building located in the heart of downtown Brooklyn. The Walker & Dunlop Capital Markets team, led by Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Michael Ianno, and Christopher de Raet, acted as exclusive advisors to Steiner NYC, successfully enabling them to buy out their equity partner, J.P. Morgan Asset Management. The Walker & Dunlop team advised Steiner on the $420 million recapitalization and also arranged $62.5 million of preferred equity from Meadow Partners to support the purchase. This move solidifies Steiner's full control of Hub, marking a strategic shift in the ownership structure of one of Brooklyn's best-in-class, high-rise residential buildings. "We are pleased to serve as a flexible and creative partner to Steiner NYC through our preferred equity financing solution for Hub," said Marc Mechanic, partner at Meadow Partners. "Meadow has significant experience as both an owner and lender operating in New York and this transaction reflects our ability to apply our extensive knowledge of the market to support a high-quality multifamily project in an attractive Brooklyn neighborhood." "It's been a privilege to work alongside Steiner to execute this unique project," said Aaron Appel, senior managing director and co-head of New York Capital Markets at Walker & Dunlop. "This deal stands apart from traditional financings due to its complex structure, which involved an equity buyout and the sourcing of preferred equity to help capitalize the transaction. We are excited to see Steiner gain full ownership of this landmark property." Developed by Steiner, Hub, at 55 stories, was the tallest building in Brooklyn upon completion in 2018. The tower, at 333 Schermerhorn Street, offers studio, one-, and two-bedroom rentals with stunning views of New York Harbor, the Manhattan skyline, and multiple bridges. Hub is located at the confluence of Boerum Hill, Fort Greene, Brooklyn Heights, and Park Slope, and boasts 12 subway lines in a 2-block radius. W&D previously arranged the construction financing, JPMAM's equity investment, and institutional permanent financing in 2019. "Walker & Dunlop added real value. This deal would not have gotten done without them. And it got done fast – two months from contract signing to closing," said Doug Steiner, Chairman of Steiner NYC. "We obviously take enormous pride in Hub, so we are thrilled to now have full ownership." Steiner traces its roots to 1907. Notable projects include: Steiner Studios, New York's only Hollywood-style film and television production facility, consisting of 900,000 square feet of soundstages and support space on 50 acres in the Brooklyn Navy Yard; "Steiner East Village," an 82-unit luxury condominium project that was the best-selling building in Manhattan upon completion; and "Admirals Row," a 686,000 square foot mixed-use complex at the Brooklyn Navy Yard featuring the first Wegmans Supermarket in New York City. In 2024, Walker & Dunlop's Capital Markets group sourced capital for transactions totaling over $16 billion from non-Agency capital providers. This vast experience has made them a top adviser on all asset classes for many of the industry's top developers, owners, and operators. To learn more about Walker & Dunlop's broad financing options, visit our website. About Walker & Dunlop Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry. View source version on Contacts Investors: Kelsey DuffeyInvestor RelationsPhone 301.202.3207investorrelations@ Media: Nina H. von WaldeggVP, Public RelationsPhone 301.564.3291info@ Phone 301.215.5500 7272 Wisconsin Avenue, Suite 1300Bethesda, Maryland 20814 Sign in to access your portfolio
