CalPERS buys two NYC multifamily towers for $400m

Boston-based GID Investment Advisers, on behalf of the giant California pension, has purchased The Ashley and The Aldyn from a partnership between The Carlyle Group and Extell Development.

GID Investment Advisers has purchased two New York City multifamily properties on behalf of the California Public Employees’ Retirement System (CalPERS) for a total of $400 million.

The Adlyn

The Boston-based firm, which became the sole manager of CalPERS’ core multifamily portfolio in 2010, acquired The Ashley, a 209-unit property located at 400 West 63rd Street, for $242.3million. It also purchased The Aldyn, a 136-unit condo located at 60 Riverside Boulevard, for $157.7 million. 

GID acquired both properties from a joint venture between The Carlyle Group and New York-based Extell Development, according to data provider Real Capital Analytics. The properties, which are connected, were built in 2010 and currently are 98 percent occupied. 

“The Ashley and Aldyn provide GID an opportunity to expand our exposure in New York City in a single transaction,” said Bill Chiasson, senior vice president and director of eastern region acquisitions for GID, in a statement. “Manhattan historically has provided consistent revenue growth versus the national average, and valuations hold up better over time versus other core US markets.” 

The Ashley and Aldyn offer such amenities to tenants as a fitness center, indoor pool, a 24-hour doorman, concierge services, private storage, a shuttle service to the subway and valet parking. An additional condominium is planned for development adjacent to the properties.
Separately, CalPERS approved a plan earlier this month to extend its interim real estate policy limits by two years to allow more time for the rebalancing of its property portfolio to be more heavily weighted toward core strategies. The $260 billion pension system has a long-term strategic limit of 75 percent to 100 percent for core and 0 to 25 percent for both value-added and opportunistic investments. Under the newly approved policy limits extension, the target date for achieving that limit will be July 1, 2017.