US investment firm Blackstone and Canada's Ivanhoe Cambridge have purchased an entire Manhattan neighbourhood for US$5.3 billion, after agreeing to hold down rents on several thousand apartments.
The purchase is of Stuyvesant Town-Peter Cooper Village, two sprawling residential complexes built in 1947.
The lot in question has 56 properties, about 11,200 apartments, sources said.
When it was built, the New York City development was aimed at veterans, as well as boosting available housing that was generally affordable for middle-class renters.
The purchase was carried out as a joint venture in which Blackstone holds 51 percent and Ivanhoe Cambridge 49, a source close to the deal said.
The buyers agreed to keep 5,000 rent-controlled units at Stuyvesant Town at least through 2035 and 1,400 in Peter Cooper Village, at least through 2025.
Blackstone's real-estate portfolio includes hotel, office, retail and industrial properties in the US, Europe, Asia and Latin America, among them Hilton Worldwide and Chinese shopping malls SCP.