TIAA-CREF Joins with Ratner on Gehry Tower

NEW YORK CITY-Following earlier, unconfirmed reports that the 76-story New York by Gehry at Eight Spruce Street apartment tower was being recapitalized, Forest City Ratner Cos., TIAA-CREF and National Real Estate Advisors made it official just before the Christmas holiday. The three organizations announced that TIAA had acquired a 49% equity ownership in the residential portion of the 898-unit high-rise in Lower Manhattan, currently the tallest apartment tower in the US and valued at $1.05 billion in the recap. It’s the highest valuation ever for a US multifamily property, according to Real Capital Analytics.

Original partners FCRC and NREA are retaining stakes of 26% and 25%, respectively. Before TIAA entered the picture, FCRC was 51% equity owner, while NREA controlled 49%.