By Lauren N. Johnson
The Iconic Group has has sold its 95-unit Arias apartment building in Brooklyn’s Park Slope neighborhood to Dallas-based investment giant Invesco Real Estate for an undisclosed amount.
The one-time condo proved to be an eventual winner for Iconic, which bought the site for $8.7 million in 2007 and made the decision to rent the 95-unit building when the market soured at rates ranging from $2,100 for studios to $3,600 for two-bedrooms.
Units flew off the shelves following the April 2011 launch of the property and the building was sold free and clear of debt, according to brokers at HFF who arranged the sale.
“Arias Park Slope is the only building of its caliber in the neighborhood and has been well received by the market; achieving a stabilized occupancy within months of completion,” said Andrew Scandalios, senior managing director at HFF who led the investment sales team that also included Jose Cruz, senior managing director, and directors Kevin O’Hearn and Jeffrey Julien.
City records show the site was purchased for $8.7 million in 2007 with a $22 million mortgage added the following year.
While initially planned as a luxury condo, Iconic hired the Marketing Directors to lease the apartments early this year. Strong public interest quickly turned to spirited leasing as 28% of the upscale rentals designed by Ismael Leyva were leased in the first three weeks.
The 12-story building at 150 4th Avenue has 6,121 s/f of ground floor retail occupied by a medical dentist office as well as a family day care center. The brick building has studios and one- and two-bedroom units, averaging 764 s/f. Amenities include a 24-hour attended lobby, health club, yoga room, a laundry facility and pet spa.
“[The deal] is a further indication that apartments and multi-housing is a favored institutional class that investors desire to own,” said Scandalios, who noted the present lure and demand for multi-housing properties.
According to the latest report from Ariel Property Advisors, multifamily activity in Brooklyn jumped up in September, registering the largest month over month increases for transaction volume, dollar volume, buildings traded and units traded, of all the New York markets.
Last month alone, there were 13 transactions totaling $55.5 million. Notable sales included a former dormitory owned by Brooklyn Law School at 184 Joralemon Street that sold for $10.756 million. That price represents $387 per square foot and the buyer plans on converting the building to luxury rentals.