News:
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).
Tags:
Brokerage
MORE FROM Brokerage
Liberow and Benshar of Asset CRG Advisors arrange $18.1 million ground lease transaction for 358 Flatbush Ave. development site
Brooklyn, NY Asset CRG Advisors recently facilitated the disposition of 358 Flatbush Ave., a Brooklyn development site situated at the intersection of Park Slope and Prospect Heights overlooking Grand Army Plaza and Prospect Park.
Columns and Thought Leadership
Tri-state capital migrates nationally amid regulation pressure - by Reese Weaver
New York tri-state multifamily investors are increasingly reallocating capital to less-regulated markets across the U.S. as rent control and legislative risk erode returns at home. With over 60% of New York City’s rental housing stock classified as rent-stabilized, the traditional value-add model — buying under-performing buildings,
A fresh start - by Shallini Mehra and Amit Doshi
For the past several years, the New York City multifamily housing market has been defined by disruption. The combined impact of the HSTPA rent laws and a sharply higher interest rate environment has fundamentally reduced
AI comes to public relations, but be cautious, experts say - by Harry Zlokower
Last month Bisnow scheduled the New York AI & Technology cocktail event on commercial real estate, moderated by Tal Kerret, president, Silverstein Properties, and including tech officers from Rudin Management, Silverstein Properties, structural engineering company Thornton Tomasetti and the founder of Overlay Capital Build,
Strategic pause - by Shallini Mehra and Chirag Doshi
Many investors are in a period of strategic pause as New York City’s mayoral race approaches. A major inflection point came with the Democratic primary victory of Zohran Mamdani, a staunch tenant advocate, with a progressive housing platform which supports rent freezes for rent
