Carlyle Group, Stonehenge Land $235M Recap for NYC Tower

The newly formed joint venture will invest in upgrades to The Ritz Plaza, a 479-unit residential community in Times Square.
The Ritz Plaza. Image courtesy of Stonehenge

A new joint venture between Stonehenge NYC and Carlyle Property Investors, a real estate fund sponsored by The Carlyle Group, has recapitalized a 479-unit rental tower in New York City, The Ritz Plaza, for $235 million.

The $235 million first mortgage was financed through Deutsche Bank and was arranged by Hodges Ward Elliott. Ackman Ziff represented Carlyle Property Investors in the deal. The 43-story tower was built in 1989 and has been owned and managed by Stonehenge NYC since 1996, when the firm purchased the property for $77 million.

Located at 235 W. 48th St., in the heart of the Theater District, The Ritz Plaza offers a mix of studio, one and two-bedroom units that have an average of 752 square feet. Amenities at the luxury community include a 24-hour doorman, indoor swimming pool, fitness center, member’s lounge, rooftop sundeck and an outdoor terrace.

MAKING MOVES IN NYC

Last December, a fund managed by The Carlyle Group closed on its purchase of luxury rental tower 1 QPS in Long Island City, Queens for $284 million, the most expensive rental building sale in the borough’s history. Carlyle appointed Stonehenge as the exclusive marketing, leasing agent and manager at the 391-unit community.

The Carlyle Group has recently been involved in joint venture acquisitions of multifamily properties in metros across the U.S. In February, The Carlyle Group teamed up with The Calida Group to purchase a 456-unit Las Vegas community for $87 million. Just last month, the company teamed up with Alterra Property Group to acquire The Commonwealth, a 98-unit multifamily property in Philadelphia for $29.7 million.