Meridian’s Doshi and Doshi sell a multifamily asset in an off-market transaction for $18.5 million

Brooklyn, NY Meridian’s Chirag Doshi and Amit Doshi recently closed on the sale of 144-148 North 10th St., a 36,000 s/f multifamily property situated between Bedford Ave. and Berry St. The ecofriendly property, which sold for $18.5 million was built in 2006 with the environment in mind. The six-story elevator building contains 22 apartments and commercial space on the lower level. The property features a 12-car garage, a bike room, cold storage, and roof deck for tenants. 

The property was purchased at a going-in cap rate of 4.40%. All of the units will be deregulated upon expiration of the 421-a in 2024 wherein purchaser, Miami-based Lineaire Group, will have the ability to substantially increase rents. Lineaire intends to spend significant capital, upon the expiration of the abatement, in unit and common area renovations as well as commercial space buildout for their value-add strategy. Further metrics of this transaction include a 17x gross rent multiplier, a basis of $503 per s/f and $750,000 per unit. 

Meridian’s Doshi and Doshi represented both the seller, the Herschenfeld and Genet families, and the purchaser, Lineaire Group, in this off-market transaction. 

“421-a deals such as 144-148 North 10th continue to be in strong demand by investors who recognize the value of what will soon be a fully fair market asset. For a Miami-based investor like Lineaire, the ability to mark to market rents and yield a 40% increase in income in a prime location of New York was a much more compelling investment strategy than buying a hyper-compressed cap rate with aggressively projected rent growth for similar assets out of state,” said Chirag Doshi.

Close by to McCarren Park, 144-148 North 10th St. is in Williamsburg, an area that attracts people of all ages and renter profiles with its boutiques, breweries, restaurants, and summer food festivals like Smorgasburg. The property is walking distance to the Bedford Ave. subway and North Williamsburg Ferry.

Attorney Kenneth Volandes of Volandes Law represented the seller and Lee Edelson of Federman Steifman LLP represented the purchaser.