L+M Development Partners and Invesco Real Estate have agreed pay $1.2 billion for the 2,800-unit portion of the Putnam portfolio from Brookfield Asset Management and Urban American, according to WSJ.
- Interesting wrinkle: The partners are planning to convert two-thirds of the units into affordable apartments in exchange for deep property-tax breaks. All of them are now market rate.
- Be Smart: City officials and investors have dusted off a 1960s-era city tax-exemption program known as Article XI. The provision allows the city to negotiate individual deals with property owners, where the city seeks to balance the cost of lost tax revenue with the benefit of rents set at no more than 30 percent of median income for renter households who meet specific income limits. The idea is that the value of the tax breaks in East Harlem and Roosevelt Island will help make up for the lost rent.
- Properties include: Roosevelt Landings at 552 Main Street; River Crossing at 1940 First Avenue; the Heritage at 1295 Fifth Avenue; the Miles at 1990 Lexington Avenue; and the Parker at 1890 Lexington Avenue.