MetLife provided the debt
Brookfield Property Partners has acquired a stake in Richard Ravitch’s Waterside Plaza, valuing the asset at $650 million. The four-tower complex is located in Kips Bay along the FDR Drive at East 25th Street. It contains 1471 apartments and 50,000 square feet of commercial space. Bloomberg first reported that the deal was in contract in July.
Political History: Ravitch was the head of the MTA and also served as the lieutenant governor of New York. Although he built the complex as Mitchell-Lama housing, he exited the program 20 years ago. In August, he signed an agreement with the city to preserve 325 affordable units for the next 75 years in exchange for renegotiating his ground lease until 2118.
The Play: The free market apartments can be renovated and upgraded. Additionally, the large outdoor space and garage allow for interesting redevelopment opportunities.
Financing: The newly formed JV landed around $380 million in debt from MetLife.