Nuveen pays $69.1M to Omni, Stone Point for control of 6K-unit NYC affordable portfolio

Nuveen Real Estate paid $69.1 million to Omni New York and Stone Point Capital for 78 affordable housing properties in New York City with approximately 6,300 apartments in two transactions. Each transaction was an entity level acquisition of a 75 percent interest. It was unclear who would retain the 25 percent stake or if another transfer filing would cover the remainder.

The Wall Street Journal first reported on the sale in May 2023, but did not include a transaction price. The article referred to the transaction as Nuveen buying substantially all of Omni New York’s national assets totaling about 12,000 units.

The sellers in the New York City transaction were identified as an Omni New York entity, a Stone Point Capital entity and the individual executives of Omni New York, Maurice Vaughn, Eugene Schneur and Robert Bennett.

In the larger transaction by unit count, Nuveen Real Estate through the entity TGA GP Holdco LLC paid $17.8 million to Omni New York and Stone Point Capital for the 1,654-unit residential elevator building (D6) at 16 Richman Plaza in Morris Heights, Bronx, 425-unit residential elevator building (D7) at 240-242 Lott Avenue in Brownsville, Brooklyn, and 249-unit residential elevator building (D1) at 2311 Southern Boulevard in Belmont/Little Italy, Bronx, and others. The deal closed on May 5, 2023 and was recorded on June 2, 2023. The 77 properties have 5,811,025 square feet of built space and 1,173,612 square feet of additional air rights for a total buildable of 6,090,808 square feet according to a PincusCo analysis of city data.

In the larger transaction by dollar value, Nuveen Real Estate through the entity TGA GP Holdco LLC paid $51.3 million to Omni New York and Stone Point Capital for the 387-unit affordable project Archer Green at 92-23 168th Street in Jamaica, Queens. The property is divided into three commercial condominiums.

The deals closed on May 5, 2023 and were recorded on June 2, 2023.

The transaction is for 75 percent stake in the portfolio, of 6,313 units in New York City, according to a PincusCo analysis of the sold properties.

The article says the entire nationwide portfolio has about 12,000 units and includes properties in Maryland, Massachusetts, Texas and elsewhere. Nuveen disclosed the sale in a press release here.

Prior sales and revenue

Prior to this transaction, PincusCo has no records that the buyer Nuveen Real Estate had purchased any other properties and has records in June 2022 it sold a $930 million property to Blackstone and in May 2022 sold a $291 million property to RFR Holding, over the past 24 months.
The seller Omni New York had not purchased any other properties and sold seven properties in four transactions for a total of $212.5 million over the same time period.

The seller

The PincusCo database currently indicates that Omni New York owned at least 135 commercial properties with 6,517 residential units in New York City with 6,436,272 square feet and a city-determined market value of $607 million. (Market value is typically about 50% of actual value.) The portfolio has $458.6 million in debt, with top three lenders as NYC Housing Development Corporation, Merchants Bank of Indiana, and KeyBank respectively. Within the portfolio, the bulk, or 84 percent of the 6,436,272 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. The bulk, or 55 percent of the built space, is in Bronx, with Brooklyn next at 39 percent of the space.

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