A joint venture that owns some of Manhattan’s glossiest luxury apartment buildings is preparing to launch a real estate investment trust to capitalize on demand amid a strained market.
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GO Partners, a partnership between Josh Gotlib and Meyer Orbach, has filed documents to list a $2.7B portfolio spanning more than 2,000 units as GO Residential REIT on the Toronto Stock Exchange.
The REIT, created via an initial public offering, will focus on luxury high-rise multifamily projects in major cities, starting with the five-building Manhattan portfolio.
The preliminary prospectus doesn’t include how much Gotlib and Orbach hope to raise with GO Residential REIT’s IPO or how much shares will be priced at, but the duo said they hope going public will allow them to pay down some of the $1.4B debt across the portfolio and retire “certain preferred interests.”
Orbach declined to comment to Bisnow on behalf of GO, citing regulatory restrictions.
The five-building portfolio includes the 761-unit Copper Apartments, formerly the American Copper Buildings, which Gotlib and Orbach's GO Partners purchased in 2022 for $837M. Retired boxing champion Floyd Mayweather Jr.’s Vada Properties reportedly bought a stake in the portfolio last year for $100M.
The other four buildings are the 408-unit skyscraper at 685 First Ave., the 403-unit 1 East River Place, and One and Two Sutton Place, with 443 units combined. GO Partners refinanced 685 First Ave. earlier this year with $240M from Apollo Commercial Real Estate Finance, valuing the building at $450M, Bloomberg reported.
Gotlib and Orbach will serve as the REIT’s founders and both will serve as trustees. Orbach will also take on the role of chair of the board, while Gotlib will become the REIT’s CEO as well as its chief investment officer.
The REIT will aim to cash in on New York City’s “constrained rental supply,” per GO Residential REIT’s preliminary investment prospectus. GO estimates that multifamily supply in New York City will grow by just 1% a year between this year and 2029, compared to 1.3% in other gateway cities and 1.8% in nongateway cities.
Rents being charged for GO Residential REIT’s apartments are below market rate, per the prospectus. The firm is planning to adjust rents to match market levels, including by upgrading some units.
Its growth strategy also involves renting out building amenities like rooftops and pools to create additional revenue streams, as well as seeking out “high-potential properties” for future acquisitions.
“The limited expansion of rental inventory in New York City exacerbates the already high demand, contributing to upward pressure on rental rates and making the market increasingly competitive for both residents and investors,” the prospectus reads.
