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Brookfield Has Sold $1.4B Of Its NYC Real Estate Holdings

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HFF CEO Mark Gibson Brookfield Property Group chairman Ric Clark
HFF CEO Mark Gibson interviewing Brookfield Property Group Chairman Ric Clark at a Georgetown University event.

Brookfield Property Partners has sold a significant stake in a New York City real estate portfolio, and more sales are in the works.

So far, it has sold a 28% stake in the portfolio, which has Manhattan office and multifamily holdings, the company announced during its quarterly earnings call this week. The sale has so far brought in $1.4B.

By the end of this year or early next, it expects to sell another 7% of the portfolio. In total, Brookfield, the real estate subsidiary of Brookfield Asset Management, expects the sale to reel in $1.8B, Bloomberg reports.

“We’re bringing in institutional investors to partner with us, and then rather than bringing them one building at a time, it’s really bringing them in across the entire portfolio,” CEO Brian Kingston said, noting that the company did the same thing in Washington, D.C., in 2015. Back then, it sold a 49% stake in an eight-building D.C. portfolio to AustralianSuper for $349M.

Brookfield signed almost 3.7M SF of office leases in Manhattan last year, putting it well ahead of its competitors. On the Far West Side, it scored nearly 60% of all the office leasing in 2017, despite having less than 30% of the available inventory.

It is making a significant push into the multifamily sector too, paying a reported $165M for a major development site in the Bronx and announcing earlier this year it will build another 1,200 rentals at the Greenpoint Landling megaproject in Brooklyn.

This week, Brookfield Asset Management announced it is acquiring Forest City Realty Trust in a $11.4B deal.  That sale will add 18,500 multifamily units and 10.8M SF of office, life science and retail space nationwide to its already-expansive portfolio.

Brookfield Property Partners is also taking full ownership of GGP, the second-largest mall owner in the United States, in a deal valued at $15B.