TerraCRG, Brooklyn’s leading commercial real estate brokerage firm, has closed on the $41,880,000 sale of four elevator multifamily buildings in Midwood. TerraCRG Partners Ofer Cohen, Matt Cosentino, and Daniel Lebor exclusively represented the seller on this deal alongside Associates, Isaiah Thomas and Ben Robbins.
On the market for the first time since being built in the 1940s, the unique portfolio comprises a total of 246 fully rent-stabilized units:
- 550 East 21st Street, a 54-unit building located just north of Ditmas Avenue, also features 28 parking spaces.
- 850 East 17th Street, a 35-unit building, is located less than two blocks from the Q train stop at Avenue H.
- 855 East 19th Street, a 60-unit building, is situated next to Ocean Avenue and Brooklyn College.
- 3111 Aurelia Court, the largest of all the properties, features 97 total units and 30 parking spaces and is located adjacent to the Triangle Junction shopping center.
“Although the properties were physically maintained and revenue-generating, we saw several areas for potential growth that the sellers could utilize to maximize value,” said Cosentino. “Our team was confident that the buildings were worth substantially more as a portfolio rather than selling them individually.”
Purchased by a large owner of rent-stabilized assets, TerraCRG was able to achieve a sub 5% cap rate on the sale, which is a significant premium on the typical rent-stabilized transactions within Brooklyn.
“We anticipated a strong reception of these assets in the market and this portfolio is a testament to the resilience of the Investment Sales market in Brooklyn, as investors continue to seek large assets in the borough,” said Cohen, Founder and CEO of TerraCRG.
The total unit mix across the portfolio includes 44 studios, 77 1-bedroom units, 100 2-bedroom units, and 25 3-bedroom units – all conveniently located near the Flatbush and Nostrand Avenue retail corridors and easily accessible to nearby transportation, including the B/Q/2/5 subway lines.