We advised an affiliate of Blackstone Real Estate Services on the investment

Davis Polk advised an affiliate of Blackstone Real Estate Services L.L.C. in connection with its $90.75 million preferred equity investment to affiliates of RXR Realty LLC, which in turn allocated and contributed those funds to six different joint ventures with affiliates of Korman Communities, that together own a portfolio consisting of six properties located in New Jersey and Pennsylvania offering luxury apartments and flexible-stay furnished apartments for extended stays. Korman is responsible for the management and operation of the properties. M&T Realty Corporation originated the senior mortgage loan financing for each property, which will be sold to the Federal Home Loan Mortgage Corporation (“Freddie Mac”).

Blackstone is one of the largest real estate private equity and investment management firms in the world with over $208 billion of investor capital under management and a $378 billion global real estate portfolio.

RXR is one of the largest owners, managers and developers in the New York Tri-State area with an operating platform managing 74 commercial real estate properties and investments (including 450 Lexington, New York, New York) comprising approximately 26.5 million square feet with an aggregate gross asset value of approximately $20.8 billion and a residential development pipeline of approximately 7,100 units under operation or development.

Korman Communities is a fully integrated, multi-dimensional real estate company that handles investment management as a general partner to generate reliable cash flow and returns.

Freddie Mac is a public government-sponsored enterprise that operates the U.S. secondary mortgage market by buying loans from lenders to allow them to provide more loans to qualified borrowers and keep capital flowing into the housing market. Freddie Mac then pools the mortgages it buys into securities, which is then sold to investors worldwide.

The Davis Polk real estate team included partner Brian S. Lichter and associates Elizabeth A. Case, Lindsay P. Talve, Gregory D. Crane and Paulina Gordon. Partner Ethan R. Goldman and associates Lex L. Varga and Benjamin Helfgott provided tax advice. All members of the Davis Polk team are based in the New York office.