Fairstead and Blackstone Pay Big Bucks for 1,000 Units in Manhattan

A portfolio of nearly 1,000 market-rate apartments was sold to a joint venture between Fairstead Capital and Blackstone Group in one of the largest multifamily deals in New York City in recent years.

By Veronica Grecu, Associate Editor

250 W. 19th St. – Manhattan

A joint venture between Fairstead Capital and Blackstone Group paid $690 million for 24 mid-rise rental properties located primarily in and around Manhattan’s Chelsea and Upper East Side neighborhoods. The assets were sold by the Caiola family, who owns a real estate empire throughout New York City, and comprise 997 rental apartments that were transferred at an average price of $692,076 per unit.

According to an official statement announcing the sale, the portfolio was previously managed by B&L Management Co., a local property management firm that was founded 25 years ago by the late Benny Caiola and his three sons. Willkie Farr & Gallagher brokered the sale on behalf of the Caiola family.

The new owners plan to upgrade the properties’ common spaces, add new amenities and renovate the units, which were built in the 1970s and 1980s.

The largest building in the portfolio includes 200 units and is located at 250 W. 19th St., Bloomberg reported quoting a source familiar with the transaction.

Image via PropertyShark