Stake Sale of 11-Building Manhattan Multifamily Portfolio Trades at Discount

An Atlas Capital Group affiliate has acquired a 51% interest in a nearly 640-unit, 11 building mid-rise multifamily portfolio spread across multiple neighborhoods of Manhattan including in and around the Upper East Side and Chelsea. The price of $142.4 million for the stake, which equates to about $279.2 million for a 100% interest is below the $355 million the portfolio was appraised for in March 2023. A 200-unit complex known as The Grove, located at 250 West 19th Street, was the largest property within the portfolio. Decisions to sell the majority stake by seller Blackstone Group were prompted by the need for a significant capital investment required to bring the 60-plus-year-old product up to Blackstone’s standards and the nearing maturity of a $270 million floating-rate commercial mortgage-backed securities (CMBS) loan. The CMBS loan maturity was extended by Blackstone until March 2024 following the sale to give new ownership additional time to refinance the senior loan that because of the extension, moved out of special servicing. In addition, Blackstone repaid $93.3 million in mezzanine debt on the properties the firm acquired in 2015 for roughly $486.895 million according to city records.