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.