US luxury high-rise multifamily investor GO Residential Real Estate Investment Trust is acquiring two assets in New York for a combined $439.6m (€382m).
GO Residential has agreed to acquire the residential and retail components of the 7 Dey Street asset at 7 Dey St, New York, NY 10007, from SL Green Realty and is also acquiring an 81% managing interest in 409 Eastern Parkway, located at 409 Eastern Pkwy, Brooklyn, NY 11216, from an unnamed seller.
GO Residential said the total consideration of $439.6m will be satisfied through a combination of cash, debt assumption, new mortgage and debt financing and equity financing.
SL Green Realty said the residential and retail components of 7 Dey Street are being sold for a total consideration of $222.6m.
Harrison Sitomer, president and CIO of SL Green, said: “This transaction continues the execution of a deliberate strategy to illuminate the value of selected assets and unlock embedded value.
“We are pleased to partner with GO Residential in a transaction that allows us to prove the value of best-in-class, new construction residential and retail properties, while retaining ownership of three office floors to realise future incremental value.”
Joshua Gotlib, CEO of GO Residential REIT, said: “7 Dey Street and 409 Eastern Parkway represent the latest steps in a concerted effort to deliver meaningful value to our unitholders.
“These acquisitions are expected to enhance our scale, asset quality and long-term growth profile, in addition to generating diversity within our portfolio. Importantly, they have been structured in a manner that reflects our disciplined approach to the balance sheet.”
Meyer Orbach, chairman of GO Residential REIT, said the latest acquisitions, coupled with the firm’s recently announced acquisitions of Ivy Tower and the Hudson Yards portfolio, “should serve as a clear signal to the market: GO Residential REIT is well-positioned to execute on accretive acquisition opportunities”.
“In just two weeks, we have entered into approximately $820.1m in acquisitions, doubling our building count and adding over 1,000 suites to our existing portfolio of 2,015 suites. These deals are a true testament to the strength of our platform.”
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