Not for distribution to U.S. newswire services or dissemination in the United States.
TORONTO and NEW YORK, March 16, 2026 (GLOBE NEWSWIRE) -- GO Residential Real Estate Investment Trust ("GO Residential REIT" or the "REIT") (TSX:GO) announced today that it has entered into agreements to acquire the following properties from two separate third-party vendors: a 100% interest in the residential and retail units in 7 Dey, located at 7 Dey St., New York, NY 10007 and an approximate 81% managing interest in 409 Eastern Parkway, located at 409 Eastern Pkwy., Brooklyn, NY 11216 (collectively, the "Acquisitions") for aggregate consideration of approximately US$439.6 million (the "Total Consideration").
The Total Consideration will be satisfied through a combination of cash, debt assumption, new mortgage and debt financing and equity financing (as further described below), subject to customary closing conditions, including the approval of the Toronto Stock Exchange (the "TSX").
The Acquisitions are expected to further strengthen GO Residential REIT's track record of acquiring market-leading luxury high-rise multifamily properties in New York City and are expected to enhance the REIT's scale, portfolio quality and long-term growth profile.
Highlights of the Acquisitions
Strategic importance: The Acquisitions continue to accelerate the REIT's scale in New York City markets, enhance the quality of its portfolio and mark a pivotal step forward in the REIT's strategy to become a premier owner and operator of luxury high-rise multifamily assets. The Acquisitions are expected to contribute to the REIT's sustainable cash flow and long-term value creation through proactive asset management and operational excellence. The offering of trust units of the REIT (the "REIT Units"), together with the Concurrent Private Placement (as defined below), is expected to increase the REIT's fully diluted unit count by approximately 12%, significantly enhancing its public float and trading liquidity.
Financial impact: The Acquisitions, the Offering (as defined below), and the Concurrent Private Placement, together with the REIT's previously announced agreements to acquire the Hudson Yards and Ivy Tower properties, are expected to be mid-single-digit accretive to annualized AFFO Adjusted per Unit. The composition of the consideration payable for the Acquisitions allows GO Residential REIT to maintain its strong capital structure and financial leverage metrics within the REIT's previously disclosed target range, as well as significantly enhance the REITs public float and trading liquidity.
Acquisition details and financing: Aggregate consideration of approximately US$439.6 million is comprised of:
Assumption of approximately US$66.6 million of fixed-rate mortgage financing, to be secured by 409 Eastern Parkway;
Approximately US$150.0 million of new fixed-rate debt financing on 7 Dey Street; and
Subject to the REIT's election (as discussed below), the issuance of $223.0 million of REIT Units (the "Consideration Units"). Each Consideration Unit will be issued at a price equal to the REIT's net asset value per REIT Unit ("NAV per Unit") of US$23.70 for a total issuance of 9,410,880 Consideration Units.
In accordance with the terms of the Acquisitions, the REIT has elected to satisfy the issuance of the Consideration Units with the net proceeds from the Offering, as well as the net proceeds from the Concurrent Private Placement and a draw on the REIT's credit facility.
The Acquisitions are expected to close in the second quarter of 2026, subject to the satisfaction of customary closing conditions, including the approval of the TSX and in the case of 409 Eastern Parkway, receipt of lender consent for the assumption of mortgage debt.
"7 Dey Street and 409 Eastern Parkway represent the latest steps in a concerted effort to deliver meaningful value to our unitholders," said Joshua Gotlib, Chief Executive Officer of GO Residential REIT. "These acquisitions are expected to enhance our scale, asset quality and long-term growth profile, in addition to generating diversity within our portfolio. Importantly, they have been structured in a manner that reflects our disciplined approach to the balance sheet."
Meyer Orbach, Chairman of GO Residential REIT, added: "Today's acquisitions, coupled with our recently announced acquisitions of Ivy Tower and the Hudson Yards portfolio, should serve as a clear signal to the market: GO Residential REIT is well-positioned to execute on accretive acquisition opportunities. In just two weeks, we have entered into approximately US$820.1 million in acquisitions, doubling our building count and adding over 1,000 suites to our existing portfolio of 2,015 suites. These deals are a true testament to the strength of our platform."
7 Dey Street, Lower Manhattan
7 Dey Street is ...
