AEW sells stake in second Park Slope rental to partner Slate Property, for $86M

Slate Property Group through the entity 555 Fourth Avenue Owner LLC paid $86 million to AEW Capital Management through the entity Partners VII/541-555 Fourth Owner LLC for a stake in the 134-unit rental (D7) at 541-555 Fourth Avenue in Park Slope, Brooklyn. This is Slate buying out its partner AEW in the joint venture to develop the building.
The deal closed on July 22, 2021 and was recorded on August 11, 2021. The contract was signed August 22, 2020.
The property has 103,430 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $831 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on 13-Jul-16, for $19.9 million.
The signatory for AEW Capital Management was Anthony Crooks. The signatory for Slate Property Group was Martin Nussbaum.
(321238264)The DOB issued a new construction (NB) initial temporary certificate of occupancy for the building with 134 residential units on December 23, 2020.
Slate bought out AEW’s stake in the joint venture, which will be leased to the homeless housing nonprofit WIN. The original plan for the development was market rate housing. WIN won an $89 million contract with the city’s Department of Homeless Services to operate a shelter at the building.

Slate said in a statement to PincusCo, “As part of our growing impact investment arm, we are committed to ensuring our efforts are focused on helping those in need, such as supporting affordable and transitional housing. Through this transaction, we have secured the building’s future to help vulnerable New Yorkers and provided WIN, the operator, a long term lease to deliver much needed onsite supportive services and resources to the tenants.”

This is the second building in which Slate bought out partner AEW. In the neighboring project at 535 4th Avenue, Slate bought out AEW’s stake in the ground lease valued at $76 million. That building was also to be occupied as a homeless shelter.

Direct link to Acris document. link