The Carlyle Group and the Gotham Organization notched another victory at the Aire in Lincoln Square with a fresh round of financing.
Natixis provided a $260 million floating-rate loan to refinance the luxury rental building at 200 West 67th Street, Crain’s reported. The refinancing will go toward apartment renovations, as well as updates to the fitness center and a terrace on the fourth floor with grills, a bar and a firepit.
CBRE’s Lawrence Britvan and Michael Straw arranged the transaction.
Previously, Carlyle and Gotham landed a $216 million bridge loan from MF1 Capital associated with their acquisition of the building. They bought the property early last year from A&R Kalimian Realty for $265 million.Â
Gotham and Carlyle bought the 43-story, 310-unit luxury building for roughly $855,000 per unit. One-bedroom units rent for upwards of $5,000 monthly, but rental income only covered 87 percent of borrowing costs for the previous owner, despite near-full occupancy at the end of 2022, according to Moody’s.
Occupancy appears to remain strong as there are only six availabilities listed on the property website.
A $194 million mortgage on the property matured in November 2023. That was one of several issues hampering Albert Kalimian’s stewardship of the property. The expiration of a 10-year tax abatement further exacerbated things, causing the annual property tax bill to spike to $6.6 million.
Kalimian ultimately defaulted on that mortgage, prompting the sale process of the luxury building, which boasts amenities such as on-site parking, a children’s playroom and a yoga room.
Kalimian acquired the property from the Red Cross for $72.3 million in 2004, opening the rental building six years later. There are also retail units at the property, including a Polestar electric car dealership.
Carlyle was in the news earlier this week when it sold a 12-story, 105-unit apartment building in Dumbo to Hubb Properties for $85 million.
— Holden Walter-Warner
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