New York, NY Amit Doshi, Shallini Mehra and Jonathan Shainberg of Meridian Investment Sales closed of a three-building 190-unit portfolio in Brooklyn. This 100% rent stabilized portfolio sold for a capitalization rate of 5.1%, a gross rent multiplier of 10.4 times which was just under $150 per s/f and $142,000 per unit. Doshi, Mehra and Shainberg represented both the seller, Renaissance Properties, and the purchaser, Pistilli Realty in this transaction.
925 Prospect Place is a 200-foot-wide, Art Deco building with a spectacular lobby. This 86,000 s/f building, with 84 apartments, is located in Crown Heights. 255 East 18th St., located in Prospect Park South, consists of 42 units within 49,176 s/f, east of Flatbush Ave. and close to Kings Theatre. 2815 Beverley Rd., located in Flatbush is a 1960s construction, with 64 apartments and an outdoor parking lot. "The sellers were pragmatic and decisive in responding to the market demand after rent laws changed, bring the sale to a true 5% cap rate,” said Mehra. “Renaissance Properties had nurtured these assets with strong tenancy, minimal violations and excellent record keeping for the past 50 years”.
“The buyers on the other hand are going long on New York City, and truth be told most believe that that the price adjustments may not have subsided” said Doshi. He added, “Yet we continue to transact for a range of investors with different visions, goals and timeframes.”
This sale comes shortly on the heels of six other buildings that Doshi, Mehra and Shainberg closed in a span of 26 days. Deals as diverse as a 100% free-market building on 144 Willow St. in Brooklyn Heights for a 4.25 cap and $830,000 a door, to 120 apartments in the Soundview section of the Bronx at 5.25% cap and $125,000 a door.
Meridian’s Avi Weinstock and Josh Rhine represented the purchaser, Joseph Pistilli and his family, in procuring the financing. “The community banks are committed to lending especially at new valuations and with the same income stream. They feel strongly that lending to responsible owners, like Pistilli is a win-win situation,” said Rhine.
Robert Sandler of Farrell Fritz represented the seller and Vincent Acquista, in house legal counsel to Pistilli Realty, represented the purchaser.