Avanath / Oak Tree
JV makes $73M affordable housing play
Avanath Capital Management has acquired an affordable housing portfolio of 17 apartment buildings totaling 198 units in Brooklyn, New York for $73 million.
The properties were acquired in joint partnership with New York-based Oak Tree Management.
“This portfolio presented a rare opportunity to gain a substantial stake in one of the most dynamic markets in the nation,” said John Williams, president of Avanath.
“Brooklyn’s explosive economic growth, population gains, and cultural renaissance are driving an influx of investment capital to this market, which consistently ranks as one of the most expensive places to live in the U.S.
“This acquisition will allow us to maintain housing affordability in one of the most expensive submarkets in the country, while also doubling our existing Brooklyn portfolio and amassing economies of scale in ownership.”
Located in Prospect Heights, Crown Heights, Williamsburg, and Bedford-Stuyvesant, the properties include 115 rent-stabilized units, 79 free-market units, and four commercial spaces.
The firm plans to execute comprehensive renovations as units turn over.
Avanath worked with its JV partner, Oak Tree Management, on the acquisition of this third Brooklyn portfolio.
In 2015, Avanath acquired a four-building Brooklyn affordable housing portfolio totaling 148 units with Oak Tree. In 2016, Avanath partnered with Oak Tree again to purchase a three-building Brooklyn affordable housing portfolio totaling 46 units.
Ben Finley, a Senior Vice President with Avanath, was responsible for sourcing and acquiring the properties from a private investor.
Peter Von Der Ahe, Joseph Koicim, and Shaun Riney of Institutional Property Advisors (IPA), a division of Marcus & Millichap, and DJ Johnston of Cushman & Wakefield represented the seller. Andrew Dansker of Marcus & Millichap arranged the financing for the buyer.
Germans zero in on Williamsburg
The Britannia Group investment sales firm represented a German real estate family in the $23 million acquisition of 218 South 3rd Street, a six-story, 41 unit apartment building in South Williamsburg.
The first-time New York investors paid nearly double the $12.75 million paid for the asset by BCB Property Management in 2014.
The purchase multiple is 21.5 times the rent with a capitalization rate of 3.3 percent, according to Britannia’s co-founders and managing partners Jacob Rogosnitzky and David Zlotnick.
Rogosnitzky is a British-born real estate professional who has developed a network of high-net worth investors interested in U.S. real estate. Earlier this year he and Zlotnick, a former vice president at Meridian Capital Group, brokered a retail condominium deal in New York City for $13.5 million, also to a foreign buyer from Russia.
“I am seeing a lot of interest from Europeans in investing in New York,” added Rogosnitzky who called Brooklyn “the new European destination.”
“Our German investor sees a lot of upside in 218 South 3rd Street and its neighborhood in South Williamsburg, which is following in the trends of North Williamsburg, its more mature neighbor,” added Zlotnick.
Ariel Property Advisors
Retail asset offered at $17M
Ariel Property Advisors has been retained to sell 163-30 Cross Bay Boulevard in Howard Beach, a triple-net investment property leased to Walgreens until 2029.
The asking price for the property is $17 million.
The 9,767 s/f property offers an investor a secure, long-term income stream. Walgreens has sublet the premises and it is currently occupied by Key Food.
The current rent is $874,000 annually, with an increase of 12 percent scheduled for April 2019, and a subsequent hike of 12 percent slated for 2024.
Exclusive agents Jonathan Berman, Daniel Wechsler, and Jesse Greshin are representing the seller.
“This property offers an investor a quintessential retail asset,” said Berman, Director at Ariel Property Advisors. “The building is perfect for a major retailer as it sits on one of the busiest commercial corridors in Queens.”
Brooklyn investor cashing out
Alpha Realty has been retained to sell a five-building portfolio in Brooklyn.
The properties are 2883 Atlantic Avenue, 642 Vermont Street, 845 Schenectady Avenue, 165 Fountain Avenue, and 476 East 95th Street. hey are located in the East New York and East Flatbush sections.
The package is being offered at $13,250,000 which is priced at 5.5 percent Cap Rate.
The buildings combined consist of 45,415 s/f, 49 apartments and four commercial units. Exclusive agent Lev Mavashev said the seller is a local private investor who is liquidating all of his holdings in order to focus on other ventures.
Crown buys bank building
J.P. Morgan Chase sold 601 West 181st Street, a 12-apartment residential and commercial building, to Crown Acquisitions for $12.5 million.
The 25,000 s/f property sits on the corner of St. Nicholas Avenue and 181st Street in Washington Heights.
Alan S. Cohen of ABS Partners Real Estate represented Chase in the transaction and also procured the buyer.
According to Cohen, the sale included a leaseback option for Chase, so the bank can continue to operate in the 5,000 s/f retail section of the 25,000 s/f property.
Cushman & Wakefield
173-acre development site for sale
Cushman & Wakefield’s Metropolitan Area Capital Markets Group has brought to market a 173-acre development parcel in the Town of Haverstraw.
Known as Letchworth Village, the property is located at 100 Secor Road in Rockland County. The site is owned by the Town of Haverstraw.
“Municipal officials are enthusiastic about the potential of this property and open to working with developers to explore a variety of future uses,” noted Cushman & Wakefield’s Brian Whitmer, who is heading the assignment with Metropolitan Area Capital Markets Group team members Andrew Merin, David Bernhaut, Gary Gabriel, Les Smith and Ryan Dowd.
In 2006 a site plan was approved to construct a 500-unit, age-restricted community with single family residences, townhouses and condominium flats, along with recreation facilities and nearly 25,000 square feet of neighborhood retail on the site.
Although these approvals are still in place, the town will work with developers to maximize the site’s potential.
FEIS and SEQRA have previously been completed for Letchworth Village, potentially saving the developer millions of dollars in engineering and review costs.
Investors chasing Jersey shopping centers
Gebroe-Hammer Associates closed a series of community shopping center transactions, approximately 132,000 s/f of which sold for a combined $18.6 million in Somerset and Middlesex counties.
“At a time when industry analytics point to a slowed – and even stalled – retail transaction pace in certain New Jersey submarkets, many of Gebroe-Hammer’s long-time and new clients are seeking to expand their portfolios to include neighborhood shopping centers, with a focus on Central New Jersey where there is a high concentration of office, institutional and apartment-home properties that foster a walkable, easy-commute lifestyle,” said Ken Uranowitz, the firm’s president.
“These investors recognize that the dominant multi-family tenant population – millennials – is a feeder for local, bedroom community-based retail investment properties,” he added.
“Just like their Baby Boomer predecessors, this demographic is redefining the landscape of the neighborhoods in which they live, giving rise to retail-based lifestyle services within a short stroll of where they live and commute.”
Among Gebroe-Hammer’s recent Central Jersey neighborhood retail center sales is the $12.75 million trade of Hillsborough Centre, a 90,905 s/f shopping center located at 649 Route 206 North in Hillsborough, and the 40,000 s/f two-building Nixon Plaza at 2048 Route 27 in Edison.
The brokerage team of Stephen Tragash and Nicholas Nicolaou represented the seller and procured the buyer in the Hillsborough sale. Greg Pine and David Jarvis did the same on behalf a separate seller and buyer in the Nixon Plaza trade.