GO Residential REIT Doubles Down on NYC with $440M Luxury Tower Deal

NEW YORK, NY – March 16, 2026 – GO Residential Real Estate Investment Trust (TSX: GO.U) today announced a massive US$439.6 million expansion in New York City, entering agreements to acquire two premier luxury apartment towers: 7 Dey Street in Manhattan and 409 Eastern Parkway in Brooklyn.

The move caps an extraordinary two-week, US$820.1 million acquisition spree for the REIT, effectively doubling its building count and signaling an aggressive strategy to dominate the city's high-end rental market. This latest deal, funded through a complex mix of debt and a significant new equity offering, underscores the company's confidence in the enduring strength of New York's luxury residential sector, even as it takes on substantial financial leverage.

An Unprecedented Pace of Expansion

The acquisitions of 7 Dey Street and 409 Eastern Parkway add a combined 394 luxury suites to GO Residential's portfolio. This comes on the heels of recently announced agreements to purchase the Ivy Tower and a Hudson Yards portfolio for US$380.5 million. In just two weeks, the company has committed to adding over 1,000 suites to its existing base of 2,015 units.

"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, in a statement. "These acquisitions are expected to enhance our scale, asset quality and long-term growth profile."

The rapid succession of deals is a clear declaration of intent. Meyer Orbach, Chairman of GO Residential REIT, highlighted the strategic momentum. "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," Orbach stated. "These deals are a true testament to the strength of our platform."

This expansion aims to solidify the REIT's position as a leading owner and operator of luxury high-rise multifamily assets, enhancing its public float and trading liquidity in the process.

Decoding the Financial Architecture

Financing such a rapid expansion requires a sophisticated capital strategy. The US$439.6 million price tag for the two new properties will be satisfied through a multi-pronged approach: the assumption of approximately US$66.6 million in existing fixed-rate mortgage debt on the Brooklyn property, securing US$150 million in new debt for the Manhattan tower, and funding the remaining US$223 million in equity.

To cover the equity portion, the REIT simultaneously announced a bought deal offering and a concurrent private placement expected to generate gross proceeds of approximately US$75.1 million. The offering is being led by a syndicate of underwriters including CIBC Capital Markets and RBC Capital Markets. The remaining balance will be drawn from the company's credit facility.

GO Residential projects that the acquisitions will be "mid-single-digit accretive to annualized AFFO Adjusted per Unit." AFFO, or Adjusted Funds From Operations, is a key performance metric for REITs that measures cash flow available for distribution to investors. An accretive deal suggests that the acquisitions are expected to immediately boost per-unit cash flow, a compelling proposition for unitholders.

However, this aggressive growth strategy is not without risk. Public filings from late 2025 show the REIT already carried significant debt, with a debt-to-equity ratio over 200%. While leveraging debt is common in real estate to amplify returns, the rapid accumulation of new liabilities will be closely watched by analysts to ensure the company can comfortably service its obligations, especially if market conditions shift.

A Tale of Two Towers

The newly acquired properties are prime examples of the modern, amenity-rich buildings that define New York's current luxury rental market.

7 Dey Street, located in the heart of Lower Manhattan where Tribeca meets the Financial District, is a 33-story glass tower completed in 2019. The building’s 209 suites boast high-end finishes like white oak flooring, quartz countertops, and integrated appliances. Boasting an impressive 99% occupancy rate as of February 2026, the property commands average monthly rents of approximately US$7.45 per square foot. Its appeal is bolstered by a comprehensive suite of amenities, including a concierge, fitness center, co-working spaces, and a rooftop terrace, as well as ground-floor retail space leased to national brands like T-Mobile and Wells Fargo.

Across the East River, 409 Eastern Parkway is a premier 185-unit high-rise in Brooklyn’s vibrant Prospect Heights neighborhood. Built in 2018, the property was approximately 95% occupied as of February, with average monthly rents of US$4.90 per square foot. Its location offers proximity to cultural landmarks like Prospect Park and the Brooklyn Museum. Residents enjoy an extensive amenity package that includes a fitness center, rooftop terrace, children's playroom, and a pet spa. The building's commercial units are fully leased, featuring tenants such as the gourmet grocer Union Market and the popular restaurant Cornbread.

Riding a Resilient Market Wave

GO Residential's bold strategy is anchored in the robust fundamentals of New York City's rental market. Despite broader economic headwinds, demand for luxury apartments remains exceptionally strong, driven by a limited supply and a persistent desire for high-quality urban living.

In Manhattan, the rental vacancy rate was a mere 1.4% in February, with median rents climbing 6% year-over-year. This landlord-favorable environment is exacerbated by a slowdown in new construction, which struggles to keep pace with demand due to high costs and regulatory hurdles. The REIT's own portfolio reflects this strength, reporting 99.5% occupancy and a nearly 10% gap between in-place and market rents in its Q3 2025 results.

In Brooklyn, neighborhoods like Prospect Heights continue to attract affluent renters seeking a blend of community feel and luxury amenities, driving strong rental growth. While the influx of high-end developments has sparked community conversations around gentrification and affordability, the demand for new, well-appointed housing shows no signs of slowing. By acquiring these nearly fully-occupied, modern assets, GO Residential is positioning itself to capitalize directly on these powerful market trends, capturing rising rents and generating stable cash flow for its investors.