NEW YORK CITY—Brookfield Property Partners has signed a contractto acquire a 3,962-unit portfolio of apartment buildings in UpperManhattan, the company said in a public filing last week. Acquiringthe portfolio would increase the value of its residential holdingsby about a third, according to The Real Deal.

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Brookfield did not identify the portfolio by name or give thepurchase price, but this Spring it was reported that the companywas looking to buy the 3,962-unit Putnam portfolio from the NewJersey-based landlord Urban American and other investors for about$1 billion. Sources say the investors include the governmentsponsored home financing company, Fannie Mae.

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Brookfield is developing residential units as part of itsManhattan West project in Hudson Yards, and an affiliate has beenin negotiations to carry out a non-eviction condominium conversionat the 11,000-unit Stuyvesant Town and Peter Cooper Village, theReal Deal notes.

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Ric Clark, Brookfield CEO, mentioned the Upper Manhattanpurchase on the company's second-quarter earnings call last week.“In July, we executed definitive agreements to acquire a 4,000-unitmulti-family portfolio located in Manhattan,” he says, “[which] hada very attractive evaluation relative to replacement cost.”

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Brookfield intends to invest slightly more than $100 million aspart of a total equity investment in the deal of $320 million, thecompany reports. The Putnam portfolio has several addresses,including 3333 Broadway, which has 1,193 units; Roosevelt Landingsat 510-580 Main St. on Roosevelt Island, 1,003 units; RiverCrossing at 1940-1966 First Ave. and 420 East 102nd St., 761 units;Heritage at 1295 Fifth Ave., 600 units, 1309 Fifth Ave. and 1660Madison Avenue; and the Miles and the Parker at 1890 Lexington Ave.and 1990 Lexington Ave., with a total of 405 units.

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With the purchase, Brookfield will increase the number ofapartments it owns in the US from 22,246 mainly garden-styleapartments in 12 states to more than 26,000. But it will grow thevalue of the portfolio by far more. The current multifamilyportfolio is valued at about $3.3 billion, with Brookfield's shareworth $865 million, according to Brookfield's public filings. Thiswould increase the value of the portfolio by about a third, to $4.3billion.

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In addition, the company has other residential projects onits plate, Clark said. “We are excited about our plans to launchconstruction of an 850-unit multi-family tower at our ManhattanWest development late this year,” he said on the earningscall.

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Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.