GreenOak buys NYC apartment building for $390m

The acquisition, in partnership with Slate Property Group, marks the firm’s latest investment on behalf of its second US fund.

GreenOak Real Estate and Slate Property Group have teamed up to purchase RiverTower at Sutton Place, a 38-story rental property in midtown Manhattan for $390 million, the firms said last week.

Equity Residential sold the 311-unit building, located at 420 East 54th Street, to the joint venture, the first partnership for New York-based GreenOak, a private equity real estate firm, and Slate, a New York real estate developer. A spokeswoman for Slate declined to specify the joint venture’s equity split. Slate plans to oversee the property, which includes one-, two- and three-plus apartments with amenities such as a bicycle room, a 28,000-square-foot landscaped plaza, an onsite 182-car parking garage, and a fitness center. The firms plan to reposition through a comprehensive building renovation and unit upgrades. The rental property was originally developed by Harry Macklowe in 1982 and was purchased by Equity Residential in 2010.

The capital for GreenOak’s portion of the acquisition came from the firm’s second US fund, GreenOak US Fund II, an $870 million vehicle it closed in October 2014. At the time of the fund’s final close, GreenOak already had deployed about one-third of the vehicle’s capital.

GreenOak has about $5.6 billion of assets under management as of September, according to its website. Through its US funds, the firm has focused on deploying capital into gateway cities, particularly into New York. The firm was founded in 2009 by Sonny Kalsi, Fred Schmidt and John Carrafiell, who ran Wall Street’s largest real estate investing group at Morgan Stanley until the market crashed.

CB Richard Ellis represented Equity Residential in the transaction.

GreenOak declined to comment on the purchase.