L+M Development Partners + Invesco Real Estate have closed on their $1.2 billion acquisition of the 2,800-unit portion of Brookfield’s Putnam portfolio. The buyers secured around $823 million in financing from Wells Fargo in the form of an agency loan with Fannie Mae.
- Worth Noting: The financing package covers all of the properties in the deal except for Roosevelt Landings at 552 Main Street. Other buildings include: 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.
- Interesting wrinkle: L+M and Invesco will convert two-thirds of the units into affordable apartments in exchange for deep property-tax breaks. All of them are now market rate, the WSJ noted when the deal entered into contract.
- 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.