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Deals & Dealmakers

Selling points: Mixed-use plan for Williamsburg site, LES portfolio fetches $24M

Eastern Consolidated

Mixed-use plan for Williamsburg site

Eastern Consolidated has arranged the sale of a blockfront development site at 286-298 & 300-306 Wythe Avenue in the Williamsburg section of Brooklyn for $27 million.

The site consists of two contiguous lots that together can support construction of up to approximately 51,200 buildable square feet with a community facility.

The zoning for both properties will allow for residential and commercial development as of right.

Nicole Rabinowitsch and Gabriel Saffioti, directors at Eastern Consolidated, represented the seller, Tri-Boro Shelving & Partition Corp., a long-time owner, and the buyer, North Development Group, a Brooklyn-based developer planning a mixed-use project on the site.

“It was a seamless transaction with excellent buyers from contract signing to closing,” Saffioti said.

“North Development Group focuses on value-add opportunities in the three boroughs of Manhattan, Brooklyn and Queens and this site will be a great addition to the firm’s investment objectives and development pipeline.”

Situated between Grand Street and North First Street, 286-298 Wythe Avenue, aka 70-78 North First Street, and 300-306 Wythe Avenue, aka 73-75 Grand Street, both have one-story factory/warehouse buildings on them.

The seller’s attorney was Robert S. Portegello, partner, Meister Seelig & Fein LLP, and the buyer’s attorney was Lawrence Hansen, Esq., Hansen Law PLLC.

Highcap Group

LES portfolio fetches $24M

Marolda Properties has sold a Lower East Side portfolio for $24.4 million.

Josh Goldflam, managing principal of Highcap Group, arranged the sale of 72, 74 and 104 Forsyth Street in Manhattan to a investment partnership, BP Forsyth LLC.

It is the second time in three years that Goldflam has sold the package. He represented Marolda Properties in 2012 for their purchase at $9.8 million, and also represented the 30+ year former long term ownership.

“The buyers picked up a great package with tons of future upside potential both financially and within the neighborhood,ˮ said Goldflam.

“Three blocks north, Ian Schrager is building a condo-hotel and, in addition, other nearby new construction projects will have a positive impact on the values in the neighborhood.ˮ

The Forsyth Street package includes 56 apartments and six retail stores. The sales price equates to 16 times the rent roll, a 4.8 percent capitalization rate, $359,000 per unit and $773 psf. All buildings consist of a mix of free market and rent stabilized apartments. There also over 8,400 s/f of unused air rights.


Sisters sell White Plains campus

The Sisters of the Divine Compassion have completed the sale of their Good Counsel property at 52 North Broadway in White Plains to WP Development NB LLC. The purchase price was not disclosed.

A key element of the sale is the preservation and enhancement of the church on the property, the Chapel of the Divine Compassion.

The Sisters of the Divine Compassion will also continue to maintain congregational leadership and operational offices in the building next to the Chapel.

The 16-acre property was sold unconditionally. The purchaser is evaluating potential future uses. The property includes 12 buildings including the Chapel encompassing 162,000 s/f .

Funds from the transaction will provide for the living and healthcare expenses of the Sisters over the next 30 plus years, and enable the continuation of their mission.

The Sisters have owned the White Plains property for 125 years.  CBRE brokered the sale.

Alpha Realty

Bushwick apartment building sold

Alpha Realty announced the sale of 36-40 Linden Street in Bushwick for $10.5 million.

Managing partner Glenn Raff represented the Manhattan-based buyers. Managing partner Lev Mavashev represented the seller, a local private investor.

The four-story building is comprised of 38 apartments and is located between Bushwick Avenue and Broadway. Mavashev previously sold to the property to the current seller in 2012.
“Bushwick has seen increased real estate values as potential renters who are priced out of nearby Williamsburg and Bedford-Stuyvesant began searching for neighborhoods with close proximity to Manhattan and more modest rents,ˮ said Raff.

“Landlords of the larger, more desirable properties are hesitant to put their building on the market knowing their scarcity,” added Mavashev. “Glenn and I were able to help resolve all of the outstanding issues to get this deal done.”

Marcus & Millichap

Red Hook development site hits market

Marcus & Millichap is listing a Red Hook development site near the planned Red Hook Innovation Studios

Matt Rosenzweig, Jakub Nowak and Jesse Kay have priced the site at 63-79 Ferris Street at $22 million, or $137 per buildable square feet.

“This offering represents a unique opportunity to build a project of significant scope on one of the Red Hook’s strongest locations for office, creative space, education, retail and other commercial developments,” said Rosenzweig.

The site is an assemblage with a total land area of 80,000 s/f and offering 160,000 s/f of development potential based on M2-1 zoning.

“The property gives developers the opportunity to purchase an unencumbered site with significant development potential and to capitalize on Red Hook’s emerging creative and tech economy” says Nowak.

The site is adjacent to the future Red Hook Innovation Studios, a 1.2 million square foot flagship development in the emerging Red Hook creative and tech economy.

KRE Group

Owners balance portfolio with $107M purchase

The KRE Group and Oxford Realty Group, a family-owned management company with properties throughout New Jersey, Pennsylvania and New York, have acquired a 550-unit rental property in Piscataway, NJ, in partnership with Blue Vista Capital Management. Royal Gardens Apartments, located at 3060 New Brunswick Avenue in Piscataway, comprises 258 one-bedroom apartments and 292 two-bedroom residences on a 36-acre site.

The purchase price was $107.25 million. Joseph Brecher of Gebroe-Hammer Associates represented the seller.

Darin Raiken, director of acquisitions for The KRE Group, said, “We identified Royal Gardens as a value-add opportunity where we could effectively reposition the asset through capital improvements that will enhance tenant quality of life and significantly increase the value of the property.”

The acquisition of Royal Gardens allows KRE to maintain a balanced portfolio of residential assets, including both new development properties and value-added acquisitions.

The company has been one of the state’s most prolific real estate developers in recent years, developing and leasing residential developments such as 18 Park, 225 Grand and Grove Pointe.

It is developing Journal Squared, a collection of three residential towers in Jersey City. KRE Group has a long-standing relationship with Oxford Realty Group. The two have developed and owned several multifamily properties together.

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