NEW YORK—TIAA-CREF, a leading financial services provider, has acquired a 49 percent equity ownership in the residential portion of New York by Gehry at Eight Spruce Street, a Frank-Gehry-designed building standing 76 stories high. Original partners Forest City Ratner Companies, a subsidiary of Forest City Enterprises Inc., the INDURE Fund, a commingled real estate fund managed by National Real Estate Advisors (NREA) are retaining 26 and 25 percent stakes, respectively.
The transaction values the 898-unit property at $1.05 billion. Prior to TIAA-CREF’s investment, Forest City was 51 percent equity owner and NREA 49 percent.
“We believe that high-quality multifamily assets in cities with the strongest demographics such as New York can be powerful additions to our well-diversified real estate portfolios,” said Phil McAndrews, head of real estate transactions and joint ventures, TIAA-CREF. “The opportunity to invest in state-of-the-art, high-rise urban apartment complexes can be rare and we look forward to working with Forest City to maximize the value of this asset for our clients over the long-term.”
New York by Gehry at Eight Spruce Street is the tallest all-residential building the U.S. and was opened in 2011. The building offers 200 unique apartment layouts for its 898 units, which include two- and three-bedroom apartments, as well as three penthouses.
The mixed-use development includes a five-story, 100,000-sq.-ft. Spruce Street School, as well as doctors’ offices and 26,000 sq. ft. of below-grade parking for 175 cars for hospital use.