Floyd Mayweather Jr., the undefeated boxing champion known for his nickname “Money,” has traded in his championship belts for a massive real estate portfolio. According to The Real Deal, Mayweather has dropped a cool $402 million on a 1,000-unit affordable housing portfolio spread across more than 60 buildings in New York City. This move signifies a significant shift in Mayweather’s investment strategy, expanding his portfolio beyond the traditional boxing world.
The seller of this substantial property is Josh Gotlib of Black Spruce Management. The deal, which started with a portion closing on Wednesday, is expected to be fully finalized by the end of the fourth quarter of 2024 or early 2025.
Mayweather’s acquisition comes at a time when affordable housing in New York City is in dire need. The city has faced a long-standing shortage, exacerbated in recent years by various factors, including soaring rents and limited available units.
Mayweather’s portfolio is concentrated in Upper Manhattan, and it’s expected to remain affordable, leveraging tax breaks and incentives designed to promote affordable housing projects. Some of the Black Spruce buildings sold to Mayweather benefit from an Article XI tax exemption. This exemption provides up to 40 years of tax breaks, ensuring that the properties remain affordable for a significant period.
This move by Mayweather has raised questions about his future plans for the portfolio. Will he maintain the affordability of the units, further expanding access to affordable housing in New York City? Or will he look to maximize profits, potentially impacting the availability of affordable housing in the area?
The acquisition has also brought attention to the real estate market in New York City, particularly the increasing demand for affordable housing and the growing interest of investors like Mayweather in this sector.
Mayweather’s foray into real estate isn’t the only indication of a burgeoning interest in the sector. Real estate exchange-traded funds (ETFs), which invest in real estate securities, saw gains on Wednesday afternoon. The iShares U.S. Real Estate ETF (IYR) rose 1.02% to $101.96, while the Vanguard Real Estate ETF (VNQ) climbed 0.12% to $97.64. The Real Estate Select Sector SPDR Fund (XLRE) also experienced growth, closing at $44.72, up 1% for the day.
Mayweather’s investment in affordable housing demonstrates a growing trend of individuals and investors recognizing the importance and potential of this sector. As the demand for affordable housing continues to rise, particularly in major cities like New York, it will be interesting to see how Mayweather’s investment shapes the landscape of the New York City housing market and the overall affordable housing landscape in the future.