By Holly Dutton
A $124 million portfolio of rent-stabilized apartment buildings has Brooklyn multi-family investors excited.
“It’s not often that a portfolio like this one comes on the market,” said Jeffrey Shalom, director of sales at Massey Knakal who is marketing the package with chairman Bob Knakal, noting that several potential buyers have taken a look-see in the past two weeks.
The portfolio, located within a three mile stretch of the Brighton Beach, Sheepshead Bay and Gravesend neighborhoods, includes five properties with nine buildings totaling 580,000 s/f and 652 rent-stabilized units.
One of the properties, Manhattan Beach Estates, is a beach-front complex at the end of Reigelmann Boardwalk in Brighton Beach.
It has 228 units and 206,432 s/f and offers nearly 43,000 s/f of development rights. The asking price for Manhattan Beach Estate is $49 million, although Shalom said the un-named seller would prefer to sell the entire portfolio rather than one or two buildings. All of the buildings have elevators and were built between 1928 and 1951. Six of the nine have parking and on-site laundry rooms.
The portfolio averages $17.55 per net square foot in a market that yields rents from $24-$25 per net square foot.
“The multi-family market in Brooklyn has really gained so much strength over the past year and a half it’s been remarkable,” said Bob Knakal, chairman of Massey Knakal. “On a relative basis, it has gained more strength than any other submarket in the city.”