(Google Maps)
Going once, going twice. Sold! The Aire is officially off the market and in the hands of a brand-new owner.
The luxury building’s road to new ownership is finally at an end. The New York Post reported that the financially stressed property “quietly sold” to the Carlyle Group and Gotham Organization last week.
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A warning bell first sounded last summer when it was widely reported that its now former-ownership group, A&R Kalimian Realty, was struggling to pay its bills despite its record-setting rental prices when the market started to reset following the downturn of the COVID-19 pandemic.
The bad news for the luxury landlord piled up in the months that followed, first allegedly defaulting on its $200 million dollar loan and then being listed for sale a month later. It was reported at that time that its rental income, which accounted for 87% of borrowing costs, did not “generate enough cash to cover rising property tax costs and other expenses.” It is believed that a key factor in The Aire’s financial woes was the expiration of its tax abatement in 2023, which caused its tax bill to increase from $1.1 million to $6.6 million.
However, with a $265 million purchase price, the loan will be repaid in full and the Kalimian group will be off the hook, according to Bisnow. The family-owned realty company purchased the Lincoln Square lot from the Red Cross in 2004 for $72.3 million and opened its doors in 2010.
The Aire’s website no longer lists the inventory for the 43-story, 310-unit building at 200 West 67th Street. StreetEasy shows no available units. However, Commercial Observer reported on Tuesday that current lease prices ranged “from $3,825 a month for a sub-400-square-foot studio to $13,000 a month for a three-bed, three-bath unit spanning 1,400 feet on the 33rd floor.”
The fact that the Aire enjoyed a tax abatement in the first place demonstrates the many abuses of the tax abatement program. The property did not offer any space for public use. It contributed nothing to the area but a 400 square foot studio apartment or $3,825/month.