Upper West Side's Aire tower quietly changes hands in a $265 million deal, marking renewed interest in multifamily property investments. (Steve Cuozzo)
In a discreet transaction last week, the Aire luxury rental apartment tower on the Upper West Side, located at 200 W. 67th St., changed hands as the Gotham Organization and Carlyle Group acquired the property from A&R Kalimian Realty. The 43-story building, housing 310 units behind Lincoln Center, secured a substantial $265 million in a sale that ensued after a competitive bidding process.
A&R Kalimian Realty, the previous owner, opted to sell the property as it faced the expiration of around $200 million in mortgage loans. Rather than pursuing new financing, the decision was made to relinquish ownership. Contrary to previous reports, Aire did not actually default on its obligations.
Gotham's acquisition encompasses the entire building, including a retail section along Amsterdam Avenue that is currently fully leased. This sale injects positive momentum into the city's apartment building market, which experienced a notable 52 percent decrease in volume in 2023, dropping to $9.7 billion, as indicated by data from Ariel Property Advisors.
It is speculated that the transaction was facilitated by CBRE's Darcy Stacom, known as the "Skyscraper Queen," along with associate Alana Bassen. However, CBRE has not confirmed the sale, and Stacom has not responded to inquiries for comment.
The Aire tower, characterized by its striking glass facade, offers amenities such as a tenants' wellness center and a private, half-acre park. The property's financial situation drew attention when a $195.8 million loan from J.P. Morgan entered special servicing last summer.
The tower, developed by the Kalimian family partnership, faced internal challenges due to disputes among the heirs of founder Elias Kalimian. Completed in 2013, the building was only about 70 percent occupied in early 2020 but rebounded to near-full capacity in the following year. However, a report in January by Crain's revealed that rental income covered only 87 percent of the incurred debt.
This purchase represents a departure for Gotham, as the company typically focuses on developing its own buildings. Among its notable projects are Gotham West on Eleventh Avenue, featuring the award-winning Gotham West Market, along with recent developments like Gotham Point in Long Island City and The Suffolk on the Lower East Side.
