HFZ Capital Group, together with its partner Fortress Investment Group, has closed on a portfolio of four residential properties in Manhattan.
The purchase price was USD610m.
The four properties include The Astor, located at 235 West 75th Street, a notable 12-story pre-war building with 199 units; The Metro, with 262 units, located at 301 West 53rd Street; the 105 unit Lex Lofts located at 90 Lexington Avenue; and the adjacent 88 Lexington Avenue, a 177 unit tower.
All combined, HFZ acquired 743 rental units in prime locations in Manhattan.
"This acquisition enables us to diversify our portfolio with different types of product and in new and expanding areas of the City," says Ziel Feldman, founder and managing principal.
Currently, HFZ is in the process of converting such landmark Manhattan properties as The Marquand at 11 East 68th Street and The Chatsworth at 340-344 West 72nd Street, as well as developing a ground-up condominium in Chelsea that flanks both sides of the High Line at 505 West 19th Street, and Halcyon, a 132 unit tower located at 305 East 51st Street in the Midtown East neighbourhood.
"Plans for these four buildings are not yet finalised – but overall, we'd like to market them at more approachable price points," Feldman says. "We're aware of the city's need to retain young families, as well as people just starting their careers and hope to address that issue in our future plans."
Howard L Michaels, chairman of Carlton Group, acted as financial advisor to HFZ in this transaction.
Deutsche Bank Securities provided financing for the transaction.