Brooklyn NY Schuckman Realty brokered the sale of two free-market multifamily walk-up buildings. The sale was facilitated by Baruch Edelkopf and Joseph Rosenfeld of Schuckman Realty, who exclusively represented the sellers in both transactions.
The first property, located at 117 Albany Ave. in Crown Heights, consists of three residential units, including a three-bedroom/two bathroom triplex and two 3-bedroom/one bathroom units. The building was previously in year eight of a 10-year master lease with common co-living, but the purchaser preferred to have the building delivered vacant and re-lease the units on an individual unit basis. The property was sold for $1.99 million ($641per s/f) at a projected 5.22% cap rate.
The second property, located at 1127 Halsey St. in Bushwick, is a 100% fair-market multifamily walk-up building consisting of three residential units, including a ground floor three-bedroom/four bathroom and home office duplex unit and two 4-bedroom/two bathroom apartments on the upper two floors. The building included in-unit washer-dryer and dishwasher and had an in-place average rent of $4,533/month at the time of sale. The property was sold for $2.735 million ($912 per s/f) at a 4.93% cap rate on the in-place rent roll, and the seller was JF Global Estates - Jay Friedman.
There has been an increased demand for smaller tax class protected buildings in Brooklyn, and these two properties are prime examples of the trend. “We are seeing a shift towards smaller buildings with less regulatory oversight, which provide greater flexibility and potential for value-add opportunities,” said Edelkopf.