Westlake Residential Properties Inc. has signed a $1.1 billion deal with an investor group led by investors including the New York City Housing Authority, a person familiar with the matter said.
The group, called Westlake Partners, is a partnership between the New Yorkers who own property in the Westlake complex and the investor group, which will acquire about half of the complex.
The person said the transaction, which is expected to close by the end of the year, is expected be completed by the spring.
The deal is expected make Westlake the largest residential real estate investment in New York State history.
The average sale price of residential real property in New England is about $2.3 million.
Westlake, based in Westlake, Colo., is in the midst of a $8 billion expansion project to add about 800,000 square feet to its portfolio, according to the person familiar.
The firm plans to open new offices in New Jersey and Connecticut and expand its corporate campus in Chicago.
The company is seeking a buyer for about $1 million per unit, the person said.
The total value of the purchase price, if the deal closes, would be about $8.5 billion.
The buyer would be responsible for paying a down payment of at least 30% of the sale price and interest on the loan.
The deal is being reviewed by the New Jersey Department of Financial Services, which could approve it, according the person.
The New York Times reported earlier this month that Westlake had reached a deal to purchase the West Lake complex, the West Larkspur Development and Park in Colorado, and its residential buildings.
West Lake said in a statement it had not received a notification from the New Orleans Department of Public Safety or the New England Department of Energy and Environmental Protection of the proposed transaction.
West Larkspruce Development is a mixed-use development, including offices and retail, which would include the West Lakespur Apartments.
The development is owned by the company’s current owner, New York developer Andrew P. Cramer.
Prairieview Partners, the private investment group led and funded by Westlake founder and CEO John R. Sperling, is working on a $2 billion deal to buy Westlake Properties Inc., according to people familiar with its plans.
The Prairieview deal, which has been under review by the state Department of Finance, could go forward by the summer, according one of the people.
West Lakespruce Partners has not yet announced the name of the buyer.
The Westlake project is located in a residential neighborhood of Westlake Village.
It’s a popular destination for families who want to be close to nature and have a place to spend time, the people said.
Westlakespruce was established in 2004 and includes the Westlakespur Apartment, a 2,400-square-foot, two-story apartment building that opened in 2001.
The development includes a golf course, community garden and a restaurant.
The project is undergoing a massive expansion that will add more than 100,000 housing units to the West Hillsdale neighborhood, according an April 2016 report by real estate research firm RealtyTrac.
The plan is to add more commercial space, new office space, retail and residential buildings, according Realty Trac.