Hess, Shalumov, Setton and Galperin of TerraCRG complete $11.7 million sale

Brooklyn, NY TerraCRG, one of Brooklyn’s leading commercial real estate brokerage and advisory firms, arranged the sale of 181-182 Prospect Park West in the Park Slope neighborhood of the borough. Adam Hess and his team, Sam Shalumov, Eddie Setton and Kirill Galperin, handled the transaction. The property sold for $11.7 million. The attached buildings are located across from Prospect Park and consist of 34 units, over 15,000 s/f. The $11.7 million purchase price equated to $780 per s/f, a 4.1% cap-rate, 18x gross rent multiplier and $344,000/unit. This sale represents an unusual transfer of a significant number of residential units sitting directly on Prospect Park. The purchaser is an investor with several other assets across Manhattan and Brooklyn that is making a strong push into the Park Slope neighborhood. The seller is a long time Park Slope ownership group that is using the funds as part of a 1031 exchange. As a result of limited inventory for housing this close to Prospect Park, condo pricing on the southern edge of Park Slope is approaching the $1,500/ SF level, and the rental market for renovated units is edging into the $60/SF range. In Park Slope, an area within which Adam Hess and his team handle over 30% of trades, the following portfolios have closed or are in contract: 704, 719-723 8th Avenue, Park Slope, 47 Units SOLD: $37,000,000 181-182 Prospect Park West, 34 Units, SOLD: $11,700,000 409-421 14th Street, 44 Units, IN CONTRACT: $17,500,000 “Trades in Park Slope have become rare as the appeal of the neighborhood is on the rise,” says Adam Hess, Partner at TerraCRG. “This popular area of Brooklyn continues to be one of the strongest and most established sub-markets in New York City, yet there is still a shortage of supply to satisfy the demand for high-end rental units. It was extremely unusual for this many units to be on the market simultaneously, in such a prime park side location.