Real Estate Weekly
Image default
Deals & Dealmakers

Brooklyn multifamily portfolio hits market at $20M

A portfolio of eight tax-protected apartment buildings scattered across BedStuy and Crown Heights is being offered for sale through Alpha Realty.

In all, the package includes 54 units, 70 percent of which are free-market, in eight buildings which are each protected tax class 2B which limits the tax increase the city can assess on the properties.

“There is a lot of demand for these types of properties right now” commented Lev Mavashev, who is leading the marketing effort.

“These are tax class 2B buildings with significant free-market units at rents 28 percent below pre COVID levels. This portfolio is great for value-add buyers as they will have the ability to raise rents while hedging their downside from increasing taxes.”

The package consists of 585 Franklin Avenue in Crown Heights; 704 Mac Donough Street, 877 Park Avenue and 981 Greene Avenue in Bed Stuy, 2015 Bedford Avenue and 140 Martense Street in Flatbush, 760 Evergreen Avenue in Bushwick, and 32-19 Greenpoint Avenue in Long Island City.

The 8-building package is priced at $20 million which represents a 5.5% Cap Rate and $445 psf.

According to Mavashev, the seller is a local private owner/operator who acquired the buildings over the past decade.  As units became available, each was gut renovated and exited the state’s rent regulated rent program.

Related posts

Avison Young arranges 99-year ground lease for an estimated $21.5 million


Rosewood Realty Group Brokers $36.5 Million Sale of 15-Story Hells Kitchen Mixed-Use Building


Miller Construction Begins Work on an 80,000-Square-Foot Build-to-Suit Industrial Warehouse in Orlando