Carlyle Group Scoops Up Residential Assets at a Discount
Carlyle Group continues its residential buying streak in New York City. In Gowanus, Carlyle and Z+G Property Group acquired a 51-unit elevator building at 438 Fourth Avenue from Werber Real Estate for $32.1 million — notably less than the $37.8 million Werber paid for it in 2013. The building spans 56,868 square feet and includes units currently asking between $2,995 and $7,879 per month. The purchase was financed with a $21.3 million loan from Invesco.
Carlyle also teamed up with Greenbrook Partners to buy a four-unit building at 285 Onderdonk Avenue in Ridgewood for $2.3 million — more than double its 2022 sale price. That 2,750-square-foot property is expected to serve as a cash-flowing asset.
Acadia Realty Trust Expands North Sixth Street Portfolio
Acadia Realty Trust paid $60 million for a trio of fully leased retail buildings in Williamsburg. The properties at 95, 97, and 107 North Sixth Street house tenants like Abercrombie & Fitch, Lululemon, Mejuri, and Wally. The sellers, City Urban Realty and Namdar Realty Group, had acquired the sites in 2021 and 2022 for $20.1 million, making this a significant markup.
Acadia has been highly active, having spent another $35 million on nearby properties last October and acquiring five retail assets in the West Village from Brookfield last fall for $20.25 million.
Class B Office Space Emerges as Hot Commodity
Manhattan’s Class A towers may be fully leased, but it’s Class B that’s drawing attention now. Leasing in this mid-tier category topped 2 million square feet in both Q3 2024 and Q1 2025 — a post-pandemic first. Limited new Class A supply, a wave of office-to-residential conversions, and a more budget-friendly rent differential (around $20 per square foot less than Class A) have tenants turning to upgraded Class B buildings.
At Adams & Company, one-third of Class B buildings are fully leased. Big deals include Amazon via WeWork at 424 Fifth Avenue, IBM expanding at One Madison, and Goodwin Procter moving into 200 Fifth Avenue.
Still, landlords must offer incentives like tenant buildouts and furnishings — adding costs of around $20 per square foot — in order to compete.
Naftali Group Tops Out Upper East Side Tower
At 255 East 77th Street in Lenox Hill, Naftali Group has topped out a 36-story, 500-foot-tall residential tower. The Robert A.M. Stern-designed building will include 62 condo units and a projected $500 million sellout. Financing for the project includes a $195 million loan from JPMorgan Chase and $41 million in mezz debt from Starwood. Completion is slated for fall 2026.
Major Refinancing Across Boroughs
Recent financing activity includes:
• Princeton International Properties landing a $125.1 million refinance for 154 East 52nd Street in Midtown East, replacing debt from Blackstone.
• The Jay Group securing $105 million from Bank Hapoalim and Israel Discount Bank for two multifamily buildings in Downtown Brooklyn. The project is part of a broader 450-unit development, potentially shaped by 485x tax incentive thresholds.
• Agudas Shaarei Menachem refinancing its specialty property at 1561 50th Street in Borough Park with an $8.2 million loan from Grasshopper Bank, up from $2 million.