Josh Gotlib’s Black Spruce Management is looking to recapitalize its 1,800-unit portfolio of workforce-housing buildings in Manhattan by selling a 49% to 90% stake at a valuation north of $700 million, The Real Deal first reported. The 97-building portfolio has an estimated historical occupancy of about 97%.
Dig Deeper: The offering is made up of five smaller portfolios mostly concentrated in Upper Manhattan, with another one around Hell’s Kitchen in Midtown. The buildings receive a tax abatement under NYC’s Article XI program, which offers 30- to 40-year property tax exemptions for projects that are at least two-thirds affordable.
Worth Noting: The Article XI program slowed down during the pandemic, but the city’s Department of Housing Preservation and Development in February issued a new term sheet for the program, signaling that it’s a priority under the city’s affordable housing initiatives, TRD noted.
Brokers: A Cushman & Wakefield team led by Adam Spies, Doug Harmon, Adam Doneger, and Josh King is marketing the deal. [TRD]