Hamilton Lane Partners with Dalan Real Estate to Acquire $74 million NYC Multifamily Portfolio

Rhea-AI Summary

Hamilton Lane (HLNE) has announced an investment in a $74 million NYC multifamily portfolio, acquiring an 85% interest in four Manhattan properties from a family office seller. The portfolio includes 126 multifamily units and 11,050 square feet of retail space in West Village and SoHo neighborhoods.

The transaction is structured as a partnership with Dalan Real Estate, which retains a 15% stake and will continue operating the buildings. The investment comes amid a 20% decline in U.S. real estate values over the past two years, which Hamilton Lane views as an opportunistic timing for acquiring prime location assets.

Hamilton Lane's Real Estate platform, with nearly $109 billion in assets under management and supervision as of December 31, 2024, has been actively investing in real estate for over 25 years.

Positive

• Strategic acquisition of prime NYC real estate at attractive valuations following 20% market decline
• Partnership with experienced local operator Dalan Real Estate maintaining operational continuity
• Portfolio located in high-demand neighborhoods with resilient tenant demand
• Significant ground-floor retail space (11,050 sq ft) provides diversified income stream

Negative

• Substantial capital commitment in a declining real estate market
• Concentrated geographic exposure to NYC market

Insights

Financial Analyst

Hamilton Lane's $74 million acquisition of an 85% stake in Manhattan multifamily assets demonstrates a strategic counter-cyclical investment approach. With U.S. real estate values down approximately 20% over the past two years according to the firm, HLNE is positioning to potentially capture value appreciation when the market recovers. The structure—maintaining Dalan as both minority owner (15%) and operator—shows a thoughtful approach to asset management, ensuring operational continuity while deploying capital efficiently.

This transaction represents just 0.07% of Hamilton Lane's $109 billion real estate AUM, making it relatively small but strategically significant. Multifamily properties in premium NYC neighborhoods like West Village and SoHo have historically demonstrated resilience through market cycles due to supply and consistent demand. The retail component adds diversification to the income stream.

The timing suggests HLNE is selectively targeting what they perceive as undervalued assets in prime locations, positioning for potentially stronger returns as market conditions normalize. This approach balances opportunity with prudent risk management through the partnership structure with an operator who has deep knowledge of these specific assets.

Real Estate Investment Expert

This SoHo and West Village portfolio acquisition reflects Hamilton Lane's conviction in premium-located multifamily assets despite broader market pressures. The 126 residential units combined with 11,050 square feet of ground-floor retail provide diversified income streams in neighborhoods characterized by high barriers to entry and persistent tenant demand.

The 20% market correction cited creates a potential value opportunity if Hamilton Lane's entry basis is indeed discounted relative to replacement cost and long-term value metrics. Manhattan's prime residential neighborhoods have historically outperformed during recovery phases, making this potentially well-timed if we've reached the bottom of the correction cycle.

Structurally, retaining Dalan with their decade of experience managing these specific properties addresses a crucial risk factor in multifamily acquisitions—operational expertise and local market knowledge. The 85/15 ownership split is standard for institutional/operator partnerships, aligning interests while leveraging complementary strengths.

For Hamilton Lane, this transaction demonstrates their ability to leverage their scale ($109 billion real estate platform) to access off-market opportunities while maintaining the flexibility to invest through various structures, positioning them advantageously in the current capital-constrained environment.

CONSHOHOCKEN, Pa., March 25, 2025 /PRNewswire/ -- Hamilton Lane (Nasdaq: HLNE), a leading global private markets investment management firm, announced an investment in a portfolio of four multifamily assets in lower Manhattan. Funds managed by Hamilton Lane have acquired an 85% interest in the assets of a family office seller. The portfolio comprises 126 multifamily units and 11,050 square feet of prime ground-floor retail space in the highly desired New York City neighborhoods of the West Village and SoHo. 

Dalan Real Estate is a vertically integrated real estate firm specializing in New York City multifamily properties. Dalan will retain its 15% interest in the portfolio and will continue to operate the buildings. Hamilton Lane's partnership with Dalan leverages the firm's deep familiarity with the assets and expertise in the real estate space. 

"We are excited to partner with Dalan, who has deep knowledge of and familiarity with these strategically located multifamily assets, on this transaction. We had high conviction around the acquisition of these assets, which have resilient tenant demand in a desirable location," said Elizabeth Bell, Co-head of Real Estate at Hamilton Lane.

"Following a decline in U.S. real estate values of about 20% over the past two years, we believe this is an opportunistic time to invest in high-quality assets in prime locations at attractive entry values. Given the scale of the Hamilton Lane platform and our reputation as a supportive capital partner, we have generated significant deal flow and have the flexibility to invest in real estate through various channels, including primary funds, co-investments, secondaries and joint ventures. We remain eager to continue partnering with experts like Dalan in sectors and locations where we have strong conviction," she added. 

"We are very excited to be partnering with Hamilton Lane on this transaction.  We have a high level of conviction and ten years of direct knowledge operating these assets which will position our partnership for immediate success.  There continues to be great demand for people to live in these neighborhoods and we don't expect that to change any time soon," said Daniel Wrublin, CEO of Dalan Real Estate. 

Hamilton Lane has been an active investor in real estate for more than 25 years, with the aim of providing clients with access to top-quality investment opportunities across global real estate markets. The firm's Real Estate platform represents nearly $109 billion in assets under management and supervision as of December 31, 2024.

About Hamilton Lane

Hamilton Lane (Nasdaq: HLNE) is one of the largest private markets investment firms globally, providing innovative solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for more than 30 years, the firm currently employs approximately 740 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has $956 billion in assets under management and supervision, composed of nearly $135 billion in discretionary assets and more than $821 billion in non-discretionary assets, as of December 31, 2024. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies. For more information, please visit http://www.hamiltonlane.com or follow Hamilton Lane on LinkedIn.

About Dalan Real Estate

Dalan Real Estate is a full service real estate firm which owns and operates a portfolio of properties and loans secured by multifamily and commercial assets in New York, New Jersey, Arizona, Texas, and California. Dalan's current portfolio consists of over 60 properties comprised of over 3,000 residential and 100 commercial units across more than 3mm square feet. Dalan has over $2.5 billion in AUM. 

 

View original content:https://www.prnewswire.com/news-releases/hamilton-lane-partners-with-dalan-real-estate-to-acquire-74-million-nyc-multifamily-portfolio-302410150.html

SOURCE Hamilton Lane

FAQ

What is the value and size of Hamilton Lane's (HLNE) NYC multifamily portfolio acquisition?

Hamilton Lane acquired an 85% stake in a $74 million portfolio comprising 126 multifamily units and 11,050 square feet of retail space in Manhattan's West Village and SoHo.

How does the March 2025 NYC real estate investment align with HLNE's market timing strategy?

The investment comes after a 20% decline in U.S. real estate values over two years, which HLNE views as opportunistic timing to acquire high-quality assets in prime locations at attractive values.

What is the partnership structure between Hamilton Lane and Dalan Real Estate in the NYC portfolio?

Dalan Real Estate maintains a 15% ownership stake and continues operating the buildings, while Hamilton Lane holds an 85% interest in the portfolio.

What is the current size of Hamilton Lane's Real Estate platform as of December 2024?

Hamilton Lane's Real Estate platform represents nearly $109 billion in assets under management and supervision as of December 31, 2024.