Doshi, Blumberg, and Mehra of Besen sell Albert Goodman Plaza

Besen & Associates arranged the sale of The Albert Goodman Plaza Apartments, an affordable housing complex in the Morrisania section of the borough. The portfolio includes four elevator apartment buildings containing 250 apartments and two commercial units. It was constructed in 1982 and totals 292,925 s/f. The buildings are operated under a Project Based Section 8 HUD contract. The complex was sold to Preservation Development Partners for $23.8 million. The transaction was completed by the team of Amit Doshi, Lynda Blumberg and Shallini Mehra of Besen. The property addresses are 970 Boston Rd. (aka 3250 3rd Ave., 621 & 571 East 163rd St.), and 665 East 163rd St. The complex occupies much of the entire block. Three of the buildings are part of one block and lot (3250 3rd Ave., 621 & 571 East 163rd St.), with the fourth building located across the street (665 East 163rd). The three 6-story buildings contain an aggregate of 181,500 s/f within a lot area spanning 137,833 s/f. They contain 185 residential units, a 2,000 s/f office, and 1,575 s/f retail space. The commercial units are occupied by a physician's office and pharmacy. 665 East 163rd is a 5-story, 111,425 s/f elevator building with 63 apartments located on the northeast corner of East 163rd St. and Trinity Ave. It is built 151.75 ft. by 140.58 ft. on a 45,000 s/f lot. Existing financing on the property included a private mortgage as well as second and third HUD loans due in 2024. The sale price of $23.8 million equates to a 7.4 gross rent multiplier (GRM), $94,450 price per unit, $81 per s/f, and a 6.5% capitalization rate. "We are pleased to have been a part of this challenging transaction," said Doshi. "The purchaser is a highly competent operator who continues to deliver on the mission of preserving much-needed affordable housing in New York," he said. Under the Project Based Section 8 contract, the apartments will remain affordable for another 20 years. The new landlords plan to invest $8.8 million in capital improvements which will significantly improve the quality of life for the Goodman Plaza residents.