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Goldman Sachs sells stake to Blackstone in LES mixed-use tower

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Investment giant Blackstone has purchased a minority stake in a massive Lower East Side mixed-use project from Goldman Sachs.

Blackstone has taken a roughly $171 million stake in The Suffolk, a 30-story project at 55 Suffolk St. led by developer the Gotham Organization, according to property records. The move is part of a $200.5 million financing package the development has received from Wells Fargo.

Blackstone bought its stake through Blackstone Strategic Partners, a company fund that manages $69 billion worth of assets.

Blackstone and Gotham declined to comment on the deal. Representatives for Goldman Sachs and Wells Fargo did not respond to requests for comment by press time.

The Suffolk features 378 luxury apartments, split between 75% market-rate and 25% affordable, and includes retail space on the ground floor. It is also home to the headquarters for the Chinese-American Planning Council. The $236 million project spans 400,000 square feet and was completed in 2023, according to Gotham’s website.

The Suffolk is part of Gotham’s Broome Street Development, which also features The Norfolk at nearby 64 Norfolk St., a 16-story building with 115 affordable senior apartments.

New York rents hit all-time record highs last year and appear poised to do so again this summer, with consistently high interest rates keeping many would-be homebuyers in the apartment market. Rents at available units in The Suffolk range from $4,690 for a studio to $11,700 for a three-bedroom, according to StreetEasy.

Blackstone placed a major bet on the multifamily market earlier this year, when it struck a deal to buy the apartment landlord AIR Communities for about $10 billion. The firm also recently sold a portfolio of its industrial properties in Queens and New Jersey to Terreno, a San Francisco-based real estate firm, for $246 million.

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Eddie Small , 2024-05-24 18:43:35

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