Lots of people claim to love New York City. A&E Real Estate proves it with deep and frequent investments.

After seven acquisitions in 2021 totaling more than 2,000 apartments, A&E in 2022 purchased 16 multifamily buildings, including a massive LeFrak portfolio in Brooklyn, plus two luxury buildings on Riverside Boulevard. These helped add over 1,700 apartments to the company’s portfolio since last spring and more than 3,000 overall in 2022.

“We put probably over a billion dollars in capital to work,” said Douglas Eisenberg. “I think we were one of the largest buyers over that period of time, and that’s because we have an incredible conviction when it comes to New York City.”

The company’s major purchases last year included the 14-building, 1,212-unit portfolio in Brooklyn’s Gravesend and Sheepshead Bay neighborhoods from the LeFrak Organization that included five commercial units for $248.7 million; a 455-unit, 33-story luxury rental building at 160 Riverside Boulevard purchased from Equity Residential for $415 million, which followed its earlier acquisition of the 354-unit 140 Riverside; and the 20-story, 96-unit 1080 Amsterdam Avenue from SL Green Realty for $42.5 million.

While much of A&E’s portfolio in the past focused on workforce housing, recent acquisitions have turned to market-rate assets, giving the company a diverse and representative portfolio.

“We had a good year overall in a relatively difficult environment,” said Eisenberg. “Operationally, the rent laws have had their impact on properties throughout the city. On the other hand, we’ve seen strong growth in market rents and occupancy since COVID. So we had a relatively good year operationally, but a difficult one in terms of keeping expenses in line. No matter what property type you’re investing in, it’s very difficult not to feel the impact of a 400 basis point increase in interest rates.”

Despite the obvious challenges, Eisenberg and A&E are clearly as bullish as ever on New York, and remain optimistic about the city’s prospects.

“When you put aside the impact of the current economic environment, New York is doing well,” said Eisenberg. “I think the mayor and governor, both moderates, are doing the best they can in a tough political environment. And, when you walk the streets and the neighborhoods, whether it’s in Queens or the Bronx or Brooklyn or Manhattan, neighborhoods are still alive, and people want to be here, and that’s exciting.”