A&E Real Estate Closes On SL Green Purchase

Douglas Eisenberg from A&E and the Apartments (Stonehenge 57)

A&E Real Estate, one of New York’s largest landlords, has called on the Tennessee state pension fund to complete the $ 133.5 million purchase of a residential building in Sutton Place.

The $ 56 billion Tennessee Consolidated Retirement System entered into a joint venture with Douglas Eisenberg and John Arrillaga Jr.’s A&E to buy 400 East 57th Street from SL Green Realty, an A&E spokesman said.

A&E signed the contract for the 263-unit building in April when the city’s rental market looked very different from now. It wasn’t until a few weeks later that Mayor Bill de Blasio said the city was planning a full reopening by July and rental activity began to pick up again.

In the meantime, SL Green is unloading property after property to fund a share buyback program.

A & E’s Eisenberg said in a statement emailed that the purchase price of $ 133.5 million “reflects a period of uncertainty.” The price is just under $ 400,000 per unit. Apollo Commercial Real Estate Finance provided a $ 96.5 million loan.

The Tennessee Fund owns $ 4.3 billion in real estate, according to its latest report. That’s about 9 percent of its $ 52.6 billion in assets, slightly less than the targeted 10 percent real estate allocation.

SL Green hired an Ackman Ziff team of Marc Sznajderman, Andrew Sasson and Chad Sinsheimer to market 400 East 57th Street, which the REIT acquired in 2011 as part of a seven building it bought with Ofer Yardenis Stonehenge Properties.

The rent-stabilized multi-family market took a hit in 2019 when the state changed rental laws that capped the amount of rent increases for regulated apartments by landlords. Since then, SL Green has been selling its housing stock. A&E bought another building from the REIT earlier this year and paid $ 62 million for 400 East 58th Street.

Contact Rich Bockmann