HFZ Closes on Four Residential Properties For $610 Million

743 Rental Units Added to HFZ's Manhattan Residential Portfolio

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Dec 20, 2013, 10:00 ET

NEW YORK, Dec. 20, 2013 /PRNewswire/ -- Ziel Feldman, Founder & Managing Principal of HFZ Capital Group, the real estate investment and development company based in New York City, announced today that together with its partner, Fortress Investment Group, the company has closed on a portfolio of four residential properties in Manhattan. The purchase price was $610 million.

The four properties include The Astor, located at 235 West 75^th Street, a notable 12-story prewar building with 199 units; The Metro, with 262 units, located at 301 West 53^rd Street; the 105 unit Lex Lofts located at 90 Lexington Avenue and the adjacent 88 Lexington Avenue, a 177 unit tower. All combined, HFZ acquired 743 rental units in prime locations in Manhattan.

"This acquisition enables us to diversify our portfolio with different types of product and in new and expanding areas of the City," said Mr. Feldman. Currently, HFZ is in the process of converting such landmark Manhattan properties as The Marquand at 11 East 68^th Street and The Chatsworth at 340-344 West 72nd Street, as well as developing a ground-up condominium in Chelsea that flanks both sides of the High Line at 505 West 19^th Street, and Halcyon, a 132 unit tower located at 305 East 51st Street in the Midtown East neighborhood.

"Plans for these four buildings are not yet finalized --but overall, we'd like to market them at more approachable price points," Feldman said. "We're aware of the City's need to retain young families, as well as people just starting their careers and hope to address that issue in our future plans."

HFZ is highly experienced at these types of acquisitions and has a long history of ownership and development in Manhattan. The Company has an in-house team of highly accomplished professionals in construction, management, renovation and design that can skillfully handle the $4 billion of residential developments it has in its portfolio today.

Howard L. Michaels, Chairman of Carlton Group, acted as financial advisor to HFZ in this transaction.

Deutsche Bank Securities, Inc. provided financing for this transaction.

Adam Spies of Eastdil Secured arranged the sale and financing for this transaction.

About HFZ Capital Group:

HFZ Capital Group is a Manhattan-based real estate investment and development firm with expertise in a broad range of real estate disciplines including underwriting analytics, structured finance, investment, development and asset management. HFZ capitalizes on development and investment opportunities both in the U.S. and abroad and has acquired owned, developed and operated properties across many asset classes, including residential, hotel, retail, sports and entertainment. Ziel Feldman, HFZ's Founder and Managing Principal, has championed the development of mixed-use luxury properties for over 25 years across a broad range of Manhattan neighborhoods with over 12,000 residential units bought, sold and developed. Today HFZ is managing or developing over 3.5 million square feet of Manhattan real estate. The company has a stellar reputation for restoring and preserving historic buildings to their original grace and refinement, as well as ground up developments that deliver architecturally significant properties through collaboration with renowned architects and designers.

www.hfzcap.com

About Fortress Investment Group:

Fortress Investment Group LLC is a leading, highly diversified global investment firm with approximately $58 billion in assets under management as of September 30, 2013. Founded in 1998, Fortress manages assets on behalf of over 1,500 institutional clients and private investors worldwide across a range of private equity, credit, liquid hedge funds and traditional asset management strategies. Fortress is publicly traded on the New York Stock Exchange (NYSE: FIG).

www.fortress.com

SOURCE HFZ Capital Group