GAIA Real Estate secures $31.5 million in refinancing

Manhattan, NY GAIA Real Estate closed on $31.5 million in refinancing for a portfolio of four mixed-use residential and retail properties located on the Lower East Side. The fully stabilized portfolio includes 102 Norfolk St., 106 Norfolk St., 177 Ludlow St., and 99 Allen St., comprising 84 fully occupied residential units and seven leased ground-floor retail spaces, occupied by various service-related tenants. Rialto Capital Management provided the financing.

The residential portion of the portfolio includes 70 market-rate and 14 affordable units across a mix of studio to three-bedroom layouts. 

Residential units feature large windows, hardwood floors, stainless steel appliances, marble bathrooms, and in-unit washer-dryers, all designed to appeal to the Lower East Side’s growing population of young professionals. The fully leased commercial spaces include a convenience store and six food-and-beverage operators, reflecting the area’s continued vibrance.

“We bought these buildings during COVID, when other investors were running away from the city—vacancy was high, concessions were the norm, and retail spaces were struggling,” said Danny Fishman, co-founder and CEO, GAIA Real Estate. “Our business plan is to acquire during the down cycle of the market, create value for the building’s tenants and users, and sell when it is most advantageous to do so. We are alpha players and active; we don’t buy buildings just to sit on them.”

The refinancing highlights the strength of Gaia’s value-add investment strategy and confidence in the continued performance of well-located, mixed-use assets in Manhattan. The financing was arranged by a JLL Capital Markets team led by Scott Aiese, Alex Staikos, and Christopher Pratt. The lawyer for the transaction was Moty Ben Yona from SGR.