BREDS writes $285m loan on Manhattan rental building

Blackstone Real Estate Debt Strategies (BREDS) has provided $285 million in financing for the acquisition of RiverTower at Sutton Place, a residential tower at 420 East 54th Street in Manhattan.

Blackstone Real Estate Debt Strategies (BREDS) has provided $285 million in financing for the acquisition of RiverTower at Sutton Place, a residential tower at 420 East 54th Street in the Sutton Place neighborhood of East Manhattan.

A joint venture of Slate Property Group (Slate) and GreenOak Real Estate (GreenOak) paid Equity Residential $390 million for the property.

rivertower-midtown-east-sutton-place-exterior-exterior-1The loan-to-value is about 73 percent based on loan amounts that appeared in public property records today. The financing was split between a circa $248.6 million acquisition loan, a $31.87 million building loan and a $4.6 million project loan.

The 38-story, 311-unit rental building property is one of the neighborhood’s largest rental properties, situated on a through block site between East 53rd and East 54th Streets, overlooking the East River. 

Slate and GreenOak intend to reposition River Tower as the premier, full service rental property in the Sutton Place neighborhood through a comprehensive building renovation and unit upgrades.

Originally developed by New York developer Harry Macklowe in 1982 and purchased by Equity Residential in 2010, RiverTower offers one-, two- and three-plus apartments with a 28,000 sq ft landscaped plaza, a 182-car parking garage and a fitness center.

Slate has purchased in excess of $1.5 billion in real estate assets. GreenOak has raised over $3.4 billion of equity globally and acquired over 100 properties totaling more than 12 million sq ft.

BREDS did not respond to requests for comment in time for publication, nor did a spokesperson for the sponsors.

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