Peter Rebenwurzel and David Malek have closed on their $236 million deal to buy Urban America’s Kings Portfolio.
Eastern Consolidated announced the closing, noting that there is “staggering demand” for the 1,434 apartments within the portfolio scattered over Brooklyn and Staten Island.
“While the portfolio as a whole exhibits tremendously strong performance, rents remain materially below market by roughly 25 to 30 percent or greater in select cases,” said Lipa Liberman, Eastern
Consolidated senior managing director and principal. “[The buyers] are well positioned to populate all of the units at full legal rents, maximizing on their investment.”
Eastern Consolidated chairman and CEO Peter Hauspurg, principals David Schechtman and Peter Carillo, and Director Marion Jones exclusively represented the seller in the transaction. Senior director of financial services Gary Meese, served as the analyst in the transaction.
The 1.5 million-square-foot portfolio includes a total of 1,434 apartments – 99 percent are occupied and 96 percent are rent stabilized – among 15 multi-family rental properties. Urban American invested more than $13 million in major capital improvements across the portfolio since August 2007.
Seven of the properties are located in the East Flatbush/Remsen Village neighborhoods of North Central Brooklyn, seven are located in the Midwood/Flatlands neighborhoods of South Central Brooklyn, and one garden apartment complex is located in the Oakwood neighborhood in Staten Island.
The two largest buildings in the portfolio are a 178-unit property at 2425 Nostrand Avenue in Midwood in Brooklyn, and a 176-unit complex at 2838-2868 Hylan Boulevard in Staten Island’s Oakwood neighborhood.
“It is rare that a portfolio of this quality and size ever comes to market in New York City and especially rare during a time when abundant debt and equity financing exists,” Schechtman said. “This is an incredibly large, stable portfolio with high occupancy and strong in-place income with units across a broad cross-section of the most ascendant New York City borough.”
Added Jones: “The offering experienced an exceptionally strong reception from the investment community, demonstrating the appeal in today’s market for housing across all Brooklyn neighborhoods.”
The attorney for the purchaser was Jeffrey Mehl. The attorneys for the seller were Michael Kleinerman, Hali Katz, and Rishard Cooper, of Hogan Lovells.
