Former boxing champion Floyd Mayweather Jr. has made a notable entry into the real estate market, acquiring a 1,000-unit affordable housing portfolio in Manhattan from Black Spruce Management for $402 million.
This significant investment marks Mayweather’s largest move in New York City’s real estate sector to date, following his previous ventures in nine NYC skyscrapers with SL Green and his partnership in the Times Square casino bid.
As the second-largest multifamily transaction in New York City this year, this acquisition highlights Mayweather’s growing interest in real estate investment, trailing only Michael Stern’s $672 million transfer of 9 Dekalb Avenue. The portfolio encompasses over 60 buildings, primarily situated in Upper Manhattan, providing essential affordable housing options to residents.
“This investment holds deep emotional significance for me and my family,” Mayweather stated. “Growing up, I lived in a one-bedroom apartment in New Jersey. It’s gratifying to give back to the community and help provide affordable housing options.”
Notably, several buildings within the portfolio benefit from Article XI tax exemptions, which can offer up to 40 years of tax relief for affordable housing projects. This investment aligns with Mayweather’s strategy to diversify his portfolio beyond boxing and sports-related ventures.
The deal’s closure will occur in phases, with part of the portfolio already finalized and the remainder expected to conclude by late 2024 or early 2025. This transaction takes place amid a recovery in New York’s investment market, with commercial real estate sales reaching $4.9 billion in Q3 2024, a 63% increase from the previous year. The multifamily sector alone accounted for over $1.2 billion in transactions during this period.
Black Spruce Management, the seller in this deal, has established itself as a key player in the New York rental market, amassing 4,000 units prior to this sale. Their decision to divest this portfolio to Mayweather represents a strategic shift in their holdings.
As one of the most recognizable athletes globally, Mayweather’s investment in affordable housing is poised to spotlight the critical need for such housing and inspire other high-profile investors to consider socially responsible real estate ventures.
by Tony O. Lawson
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