BEB Capital has acquired a 29-unit multifamily building at 238 East 106th Street in East Harlem .
Lee Brodsky, CEO, said the property was purchased from 106th Street Realty Development Corp. for $14.25 million, with tax-deferred proceeds from BEB Capital’s recent sale of the Corinthian Parking Garage at 330 East 38th Street in Manhattan.
BEB Capital is refocusing its business plan on the East Harlem community and other New York City neighborhoods.
The firm acquired the Corinthian Garage for $10.275 million in 2009, sold it for $16 million last fall, and used Section 1031 of the IRS code to reinvest the gains in the East Harlem property.
“The Corinthian sale was a pivotal event in our business strategy,” said Brodsky. “Making use of the 1031 rules enabled us to leverage our success at the Corinthian by building our presence in East Harlem.
“We are committed to using our entrepreneurial creativity to develop this emerging market. East Harlem is a great place to invest, and the future extension of the Second Avenue subway line makes the area’s prospects even brighter.”
Brodsky said that the company is in the planning stages for a second East Harlem development.
BEB is putting new emphasis on institutional grade investments.
“Our company has grown dramatically in recent years, and having further honed our core competencies and intergenerational experience, we are now strategically developing critical mass in East Harlem’s multifamily inventory, building a core market there and helping the neighborhood achieve its very high potential,” added the CEO.
The newly acquired property at 238 East 106th Street was constructed in 2016. The 18,860 s/f eight-story building consists of 29 free-market rentals and nine parking spaces.
Meridian Capital Group represented the seller, buyer and obtained the financing for the transaction. BEB Capital was launched in 2016 by the Brodsky family, known for its long history in real estate development.