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Brokerage
Posted: August 9, 2022
Edeklopf and Rosenfeld of Schuckman Realty sell eight unit multifamily building
Brooklyn, NY Schuckman Realty has completed the sale of 558 Lafayette Ave. located between Bedford Ave. & Nostrand Ave. Baruch Edelkopf and Joseph Rosenfeld represented the landlord.
The subject property was developed in the Early 2000's and is currently in year 17 of a 25 Year 421A Tax abatement, rendering the building 100% Rent Stabilized for the remainder of the abatement.
The building totals eight oversized residential units, with a unit mix of Four 2-Bedroom/1-Bathroom units, Two 4-Bedroom/2-Bathroom Duplex Units and Two 3-Bedroom/ two Bathroom Penthouse Units. The in-place rents at the time of sale were discounted from the DHCR Legal rents (Attributed to Concessions/Preferential Rents which were offered during Covid) and the purchaser was a 1031 Buyer who was prepared to purchase the building at a lower day one yield anticipating the units to re-lease at a rate which is closer to their Pre-Covid/Legal rents upon natural turnover of the existing tenancy.
The building was delivered traded at $5,050,000 ($558 per s/f) at what would translate to a day one cap rate of 4.31% and a Pro-Forma 5.69% Cap Rate (*both rates presented here include the unabated Taxes + the NPV of the remaining term of the abatement at a 5% Discount Rate).
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