A newly formed joint venture has been created to own and operate newly buil residential high-rises in New York and Los Angeles with a value just shy of $1bn.
Dutch institutional investor Bouwinvest Real Estate Investors and US real estate investment management and development firm, MacFarlane Partners have joined forces to invest $750 million into residential high rises.
Two investments will be made, one a partial equity interest in Level BK, a 40-story rental apartment tower along Brooklyn’s Williamsburg waterfront in New York and full ownership of the 24-story Park Fifth high-rise rental apartment project that is currently under construction in downtown Los Angeles.
Gijs Plantinga, Bouwinvest’s Director of Northern America Investments, said: “The new joint venture with MacFarlane Partners is the spearhead for Bouwinvest’s strategy of expanding its investments in North America through co-investments and joint ventures as we target lifting our assets under management in these markets to €1.5 billion by 2020. The residential sector with its positive market fundamentals, driven by U.S. population growth, sits at the center of this core investment strategy.”
To date, Macfarlane Partners has $13 billion in properties located in urban and high-density suburban neighbourhoods of major metropolitan areas nationwide.
Victor B. MacFarlane, chairman and chief executive officer of MacFarlane Partners, said: “We have helped create a generation of institutional-grade, core properties in major urban markets such as New York, San Francisco, Los Angeles and Washington, D.C. Now we and Bouwinvest will look to benefit from the income and appreciation gains that long-term ownership of high-quality assets located in top-tier U.S. markets can deliver.”