Brooklyn, NY JLL Capital Markets has closed the $97.5 million sale of 8 Marcy Ave., an eight-story, 123-unit rental building in Williamsburg.
JLL represented the seller, Prospect Development, which is led by Joel Wertzberger and Konstantin Gubareff, the property’s original developer. A joint venture between The Carlyle Group, a multinational private equity corporation, and Z+G Group acquired the asset. JLL also arranged $73.6 million acquisition financing for the buyer with Invesco Real Estate.
The building was delivered in January of this year and is on the corner of Marcy and Metropolitan Aves. 8 Marcy has two fully occupied commercial units, 86 market rate and 37 affordable apartments comprised of 31 studios, 65 one-bedrooms and 27 two-bedrooms, which were fully leased within a three-month period.
The property is located at the epicenter of Williamsburg, one of the most desirable neighborhoods in New York City, surrounded by dining, shopping along the Bedford Ave. retail corridor, nightlife and waterfront esplanades. With access to public transit via the Bedford Ave. and Lorimer/Metropolitan Stations, 8 Marcy Ave. offers a 15-minute commute into Manhattan.
The JLL Capital Markets investment sales and advisory team representing the seller was led by Ethan Stanton, along with Jeffrey Julien, Brendan Maddigan, Stephen Palmese, Rob Hinckley, Michael Mazzara, Winfield Clifford, Steven Rutman and Jay Leshinsky.
JLL’s Capital Markets debt advisory team was led by Steven Klein and Geoff Goldstein along with Christopher Pratt.
“8 Marcy is the newest benchmark on where cap rates for new construction multi-housing have settled in New York City. Our client had the benefit of double-digit rent growth since they started the project, which resulted in a positive outcome for all involved,” said Stanton.
“This acquisition was a great opportunity for the sponsorship to add a newly-built, class A multi-housing building in Brooklyn to their portfolio. In addition to the condo quality finishes and the luxury amenities, the sponsorship will also benefit from a brand new 421 tax abatement,” said Klein.
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