TerraCRG closes sale of four building Red Hook portfolio for $12.4 million

Brooklyn, NY TerraCRG negotiated the sale of the Red Hook portfolio, an assemblage of four multifamily and mixed-use buildings comprising 17 free market residential units and two retail storefronts, located along Van Brunt St.

The sale was exclusively brokered by TerraCRG’s investment sales team, including partners Daniel Lebor and Matthew Cosentino, who exclusively represented the seller, REDHOEK+, in the transaction. The buildings included in the portfolio: 121 Dikeman St., 253 Van Brunt St., 301 Van Brunt St., and 385 Van Brunt St. were sold for a combined $12.4 million. Sandy Stillman of Blue Sky Diner Inc. was the buyer.

The portfolio, totaling 14,919 s/f, was sold by developer Lee Cohen of REDHOEK+, who completed a comprehensive gut renovation of the properties prior to the sale. The buildings feature high-end finishes, including in-unit washer/dryer, split system heating and cooling, oak hardwood flooring, premium paint, and LED lighting fixtures. Several apartments were originally designed for condominium sale, ensuring luxury and quality throughout.

With tenants paying their own utilities and all properties classified as Tax Class Protected, the portfolio benefits from extremely low operating expenses. The stabilized asset generates a gross rent roll of approximately $950,000 annually and requires no deferred maintenance, as all units were placed into service within the last twenty-four months. The portfolio traded at a cap rate of approximately 6%.

Situated within six city blocks of each other, the properties allow for streamlined management and are surrounded by destinations such as Hometown Bar-B-Que, Brooklyn Crab, and Red Hook Tavern. The portfolio also has access to public transportation corridors servicing the area.

“This sale highlights the strong demand from 1031 exchange buyers and other investors seeking opportunities like this in Brooklyn’s thriving market,” said Daniel Lebor, partner and EVP Sales. “The portfolio’s turnkey condition, luxury finishes, and prime Red Hook location made it a highly attractive product. We were proud to represent REDHOEK+ and Lee Cohen in this successful transaction.”

“Working with the TerraCRG team was a pleasure. At REDHOEK+, we’re proud to deliver buildings of exceptional design and quality, and we wish the new owners great success with this portfolio,” said Cohen.

“Dan and Matt of TerraCRG are superheroes of patience and wisdom and were a great pleasure to work with during this process, and it’s an honor to inherit this passion project of Lee Cohen and his extraordinary aesthetic talent,” said Stillman.