Washington, DC-based private equity firm The Carlyle Group, in conjunction with property developer Extell Development, has reportedly reached an agreement to purchase 77 acres of Manhattan real estate from Donald Trump and a consortium of foreign investors for $1.8 billion (€1.5 billion).
The proposed transaction, reportedly the largest land deal ever in New York City, includes three apartment buildings and a swath of property stretching from 59th Street to 79th Street along the Hudson River on Manhattan’s West Side. Although Trump first bought the land in 1974, his development plans met with stiff resistance from city officials and local residents. After selling the property, buying it back again and then bringing in foreign investors when he was heavily in debt, Trump finally began construction on the existing residential buildings in 1997. The site includes eight lots where additional apartment buildings could be developed.
This is not the first New York deal for Carlyle and Extell, formerly known as Intell Management and Development – the two firms are currently building a 60-story condominium, The Orion, at 350 West 42nd Street.
In addition to its recent activity in New York, Carlyle’s US real estate unit, headed by Robert Stuckey, has been an active investor in its hometown of Washington, DC, acquiring more than $1 billion of residential, office and retail properties over the past year. The firm is currently raising its fourth US-focused real estate fund, Carlyle Realty Partners IV, targeting $900 million and its second European real estate fund targeting $650 million.