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For $46 Million, Three-Property Brooklyn Multifamily Portfolio Changes Families

145 Units Trade in Gravesend, Kensington & Parkville Submarkets
January 23, 2018
The Hertz Family has acquired three multifamily properties totaling 145 rent-stabilized units in Brooklyn, NY for $46 million, or about $317,000 per unit, from the Jeremias family, which has owned the assets for several decades.

The portfolio includes two properties in the Kensington & Parkville submarket, including 320-328 Ocean Pky - built in 1929 and comprising 50,178 square feet; and 420 Avenue F - which spans 62,370 square feet and was built in 1930. Both buildings stand six stories tall. Also included is a six-story apartment building located at 2302 85th St. in the Gravesend submarket that was constructed in 1936 and totals 38,796 square feet.

"There were a number of moving parts in this deal, and it took a fairly long time for all of the pieces to fall into place," said Erik Yankelovich, senior director of investment sales with GFI Realty Services, noting that the sale included several other offers that ultimately fell through. "We knew that the Hertz family was looking to acquire institutional-quality assets in Brooklyn, and we were able to convince them that this was the right deal for them to expand their portfolio."

The portfolio traded at a sub-4% cap rate, according to GFI, which added that each property’s strong location attracted the Hertz family’s interest.

"Arranging the sale of inheritance holdings is often complicated; therefore we had to be of assistance in ensuring all different inheritors were comfortable with the same disposition strategy," explained Aron Taub with GFI. "Despite the fact that there were several family members with ownership stakes in this portfolio, we were able to get all the stakeholders to agree to this aggressive offer with a sub-four cap rate."

Yankelovich and Taub, as well as GFI's Isaac Moskowitz, worked alongside Lipa Lieberman, Adam Sprung and Mark Steinmetz with Meridian Capital Group LLC in co-brokering the sale on behalf of the buyer and the seller.

Please see CoStar COMPS #4105184 for additional information on this transaction.



Diana Bell, New York City Market Reporter  CoStar Group   
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