A group of Israeli investors has paid a record $811 psf for a Park Slope apartment portfolio.
Adam J. Hess and Ofer Cohen of TerraCRG brokered the sale of 719-723 8th Avenue and 704 8th Avenue for $37 million, creating a new neighborhood record for a multifamily building.
Hess and Cohen represented the sellers, RedSky Capital and Megalith Capital Management, as well as the buyer.
“I think that ultimately (properties in Park Slope) will trade at these levels or higher,” Hess told Real Estate Weekly.
“We had almost 30 investors bidding on the 8th Avenue portfolio and the ultimate buyer, who plans to add five additional duplexes to the buildings, will profit handsomely as rents continue to rise in Park Slope,” Hess added.
“This is sort of a very, very unusual situation where you have 79 units on the market at the same time and we got a very good response form the market and from investors because it’s really rare to have almost 80 units come on the market at the same time in a prime area that is Park Slope.ˮ
Hess and his team also announced that 181-182 Prospect Park West, a 34-unit property directly across from Prospect Park, is in contract to a “high net worth” investor making his first foray into the borough.
Park Slope has remained one of the most desired neighborhoods within Brooklyn, ranked number seven in price per s/f and averaging $51 per s/f for rentals.
The 8th Avenue portfolio and Prospect Park West properties are all within one block of Prospect Park, representing an unusually large number of units on the market in prime Park Slope.