Carlyle Joins Stonehenge NYC in Upper East Side Luxury Deal

According to The Real Deal, PE powerhouse Carlyle Group (CG) partnered with Ofer Yardeni’s Stonehenge NYC to acquire The Henley, a 150-unit luxury rental building at 165 East 66th Street, for $128M.

Growing Together

The acquisition, which works out to around $853K per unit, solidifies Stonehenge NYC’s focus on the Upper East Side, where it owns a portfolio of seven properties.

In 2023, Stonehenge purchased a 32-story residential tower at 408 East 92nd Street from UBS for $115M, further highlighting its dedication to the neighborhood.

Carlyle Group’s partnership in The Henley deal marks its latest investment in Manhattan’s multifamily sector. Earlier this year, Carlyle and Gotham Organization acquired The Aire on the Upper West Side for $265M, backed by a $216M loan from MF1 Capital. 

This latest collaboration with Stonehenge NYC reinforces Carlyle’s strategy of targeting high-value rental properties in NYC’s prime neighborhoods.

Deeply Discounted

The Henley’s previous owner, CIM Group, invested $200M in the property roughly five years ago. The 36% price cut reflects lingering economic pressures on New York’s luxury rental market, mostly thanks to persistently high interest rates. 

Miami-based Crescent Heights retained ownership of the property’s retail section, currently occupied by Alo.

Why It Matters

Carlyle’s involvement in this discounted acquisition underscores a trend among institutional investors seizing opportunities in key markets as property values recalibrate. 

With market dynamics shifting, both Carlyle and Stonehenge NYC appear positioned to benefit from the growing demand for high-end rental assets in Manhattan’s sought-after neighborhoods.