Stewart Manor, NY Tri-State Properties co-presidents Ron Kleinberg and Dale Staudigel brokered the $13.3 million sale of 605 – 625 Tulip Ave. (24-units) and 130–150 Covert Ave. (26-units). The two garden apartment complexes total 40,000 s/f. Kleinberg exclusively represented the seller, Stewart Manor Realty and the purchaser (non-disclosed).

 

 

Kleinberg said, “The properties were built in the 1950s and they were somewhat of a unicorn:  the ownership maintained the buildings integrity for 40 years and  never strived to extract maximum capital from the undervalued rents, even though the buildings were not under rent stabilization.”

The buyer, an owner of multifamily properties on Long Island, was a logical choice for the buildings. This acquisition fit perfectly into the purchaser’s wheelhouse as their portfolio consists of aggregating rental complexes outside of ETPA guidelines with below market rents. The private family has significant multi-holdings in close proximity affording economies of scale and more efficient administration.

Staudigel said, “While it may be premature to reveal the buyer’s ultimate strategy for reinventing the buildings. I believe the purchasers goal is to create luxurious but affordable rentals, for anyone that doesn’t want the burden of ownership, yet would still desire to live within the charming Village of Stewart Manor.”

Kleinberg said, “With a favorable convergence of market drivers that continue to remain in place on Long Island, plenty of liquidity on the equity side, a lack of priced to sell properties & pent up 1031 money; the shelf life of a “for sale” Nassau County apartment building with free market rents is short lived.”