GO Residential REIT Completes Acquisitions of Two NYC Apartment Towers
GO Residential REIT has completed its acquisitions of two apartment towers in New York City.
The completions of the two previously announced purchase agreements expand Toronto-based GO’s portfolio by 26% to 2,545 residential suites, the REIT said.
GO closed the indirect acquisitions of the 209-suite 7 Dey Street tower in Tribeca on May 28 and the 321-suite Ivy Tower in Midtown Manhattan on June 5. The acquisitions were funded through available cash and approximately US$146.3 million in new fixed-rate mortgage financing for 7 Dey Street, carrying a 4.50% interest rate and maturing in 2031.
GO Residential REIT said the acquisitions are expected to enhance the quality of its portfolio, strengthen long-term growth, contribute to sustainable cash flow and be immediately accretive to annualized adjusted funds from operations (AFFO) per unit. Ivy Tower also becomes the REIT’s first unencumbered asset, a move GO said will improve financial flexibility and access to future unsecured funding.
“These transactions are poised to strengthen our platform by improving portfolio quality, expanding our footprint and supporting sustainable long-term growth,” said Joshua Gotlib, CEO of GO. “Equally important, they have been executed in a way that underscores our continued focus on maintaining a conservative balance sheet.”
Chairman Meyer Orbach added: “These acquisitions send a clear and compelling signal to the market that GO Residential REIT is well-positioned to identify and execute on accretive growth opportunities. These transactions not only reinforce the strength of our platform but also demonstrate the depth of our sourcing capabilities and our ability to translate strategy into meaningful value creation for our unitholders.”
GO Residential REIT is an internally managed, open-ended REIT that owns and operates seven luxury high-rise multi-family residential properties comprising 2,545 suites in Manhattan. The REIT focuses on investing in luxury apartment buildings in the New York metropolitan area and other major U.S. cities.
Pictured: GO’s newly acquired apartment building at 345 W. 42nd Street in New York City.
Photo: Realtor.com
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