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Category ArchiveResidential

Lightstone Group Finalizes $51M Deal for Bronx Apartment Buildings

Midtown-based Lightstone Group completed a purchase of four multi-family properties in various neighborhoods in the Bronx on Friday for $50.6 million from Belmar Realty Corp., Commercial Observer has learned.

The developer bought 105 East 177th Street, 2151 Davidson Avenue, 831 Bartholdi Street and 3520 Dekalb Avenue, which collectively have 266 apartments, according to information provided by Marcus & Millichap.

All of the buildings are fully rent-stabilized, save for the 122-unit 831 Bartholdi Street, which is completely free market. The portfolio sold at a 4 percent capitalization rate and deal was $50,000 above its asking price.

“This is a great opportunity for the seller to take advantage of today’s marketplace, and sell to a fantastic buyer in one transaction above the asking price,” said Seth Glasser of Marcus & Millichap, who represented the buyer and the seller with colleagues Peter Von Der Ahe, Joseph Koicim and Michael Fusco.

The Real Deal reported in January that the deal was in contract.

Lightstone Group is looking to upgrade the properties and hold on to them for a medium to long term because they “believe in the appreciation of the assets,” Glasser said.

Belmar Realty also put three other Manhattan properties on the market as part of the same portfolio, 336 West 95th Street on the Upper West Side, 345 East 92nd Street on the Upper East Side and 1975 Adam Clayton Powell Boulevard in Harlem.

The 20-unit property at 1975 Adam Clayton Powell Boulevard in already in contract, Glasser said, before declining to provide the buyer or the price of the sale. The asking price for that building was $5.7 million.

Source: commercial

Castellan Sells East Flatbush Pair of Rental Buildings for $19.3M

Castellan Real Estate Partners has sold a pair of Brooklyn apartment buildings with a combined 92 residential units to the Sterling Group for nearly $19.3 million, just five years after it acquired the buildings for $8.6 million, the seller told Commercial Observer..

The East Flatbush properties include 1084 New York Avenue for $13.8 million and 3506 Newkirk Avenue for roughly $5.5 million. The entire portfolio is rent-stabilized.

3506 Castellan Sells East Flatbush Pair of Rental Buildings for $19.3M
3506 Newkirk Avenue. Photo: CoStar Group

The 47,680-square-foot New York Avenue building has 62 residential units and a 1,600-square-foot retail component that is leased to a grocery store. There are 46 one-bedrooms, 12 two-bedrooms and three three-bedroom apartments and one studio. The average rent is around $1,175 per month.

And 3506 Newkirk Avenue comprises 30 apartments in a 26,126-square-foot structure. It features two studios, 16 one-bedrooms and 12 two-bedrooms. The average monthly rent is $1,020.

“As the East Flatbush neighborhood continues to thrive, the ability to acquire 93 units in this area appeals to many multifamily purchasers,” seller Etan Slomovic, a managing director of Castellan, told CO via email.

The deal was completed directly between the buyer and the seller.

Manhattan-based Castellan, which acquires valued-add properties among other things, has more than doubled its money in the five-years since picking up the properties. The firm purchased the building at 3506 Newkirk in February 2013 for $2.5 million, according to property records. The company renovated the apartments, installed a new boiler, new camera and intercom systems and emergency exit signs.

A month later Castellan acquired 1084 New York Avenue for $6.1 million out of bankruptcy. The company restored the building’s facade and installed a new intercom and camera systems among other upgrades.

An executive at Sterling Group, a Brooklyn-based investor in multifamily buildings, did not immediately return a request for comment.

Source: commercial

Midtown Real Estate Firm Centurion Realty Buys Two Soho Rental Buildings for $62M

Centurion Realty, a Midtown-based family-owned real estate management and development firm, has scooped up two apartment buildings in Soho from Joseph Nabavi’s Direct Management Corp. for $62 million.

The sale of the contiguous buildings at 68-72 Thompson Street between Spring and Broome Streets closed on Dec. 28, 2017, according to public records published today. 

The six-story buildings comprise a total of nearly 36,000 square feet and 72 rental units, according to public data. Both were constructed around the turn of the 19th century.

As a result of renovation about three years ago, the buildings feature elevators, fitness room, laundry room and rooftop terrace. Within the units, there are hardwood floors and high ceilings, according to a description on StreetEasy. The units are primarily a mix of one- and two-bedrooms.

Ralph Tawil, a principal at Centurion, did not immediately return to a request for comment, nor did anyone at Direct Management Corp.

Source: commercial

Two-Building W’Burg Rental Lists For $80M, a Year After its Completion

Grand Street Development is putting the Brooklyn Grand, a two-building rental and retail development in Williamsburg, up for sale for $80 million, according to information provided by Meridian Investment Sales.

The buildings at 774 Grand Street and 213 Maujer Street, which combine for 80,048 square feet, comprises 71 rental units and 10,717 square feet of ground floor retail. The properties were completed last year and are fully rented.

The development sports an underground garage with 19 spaces, a gym, a garden and a roof deck featuring an outdoor kitchen and hammocks. And the properties features a red brick facade, loft-style windows, exposed cement ceilings and modern finishes.

The developer, led by Founder and Chief Executive Officer Dean Marchi, has been getting a ton of unsolicited offers for the building, so he decided to market it for sale, according to Meridian.

“Distinct, boutique residential buildings rarely come available in Brooklyn, let alone ones featuring the character, amenities and the highly sought after neighborhood that Brooklyn Grand offers,” Meridian’s David Schechtman said in a prepared statement. “The property’s location among Williamsburg’s sleek boutiques, craft coffee shops and dining destinations will ensure its desirability for years to come.”

The 74,172-square-foot 774 Grand Street benefits from a 25-year 421-a tax abatement, and 20 percent of its 64 units are affordable. It mostly comprises one- and two-bedroom units, but also has some studios. Smaller units start in the mid-$2,000s per month and the larger two-bedroom units can cost upwards of $4,000 a month, according to StreetEasy.

At 213 Maujer Street, a much smaller four-story, 5,876-square-foot building, there is one studio unit and six one-bedroom apartments. The studio has rented in the mid-$2,000s per month and the one-bedroom units in the low $3,000s per month, according to StreetEasy.

Source: commercial

Icon Realty Picks Up West Village Walkup for $17.5M

Troubled landlord Icon Realty Management has purchased a partially rent-stabilized, six-story walkup at 199 West 10th Street for $17.5 million, sources told Commercial Observer.

The seller was the Ragone family, which has owned the 25-unit West Village property between West Fourth and Bleecker Streets since at least 1989, according to public records. It was the last of their seven properties in the West Village, which a Marcus & Millichap team helped sell over the course of the last six months for a total of $120 million.  

Signature Bank provided financing for the purchase, which has not yet hit public records, according to sources familiar with the deal. The 25-unit, 21,000-square-foot building traded for roughly $918 per square foot. Singature didn’t immediately return a request for comment.

Peter Von Der Ahe, Joseph Koicim, David Lloyd and Logan Markley of Marcus & Millichap handled both sides of the deal.

The property is 50 to 60 percent rent-stabilized and has five vacant units, according to Koicim.

“These are long term-hold value add,” he told CO. “Irreplaceable type of real estate.”

Icon, which owns dozens of rent-stabilized buildings in Manhattan and Brooklyn, has been under investigation by the state attorney general’s office for allegedly harassing rent-regulated tenants for the last several months. In September, the AG’s office announced that it had reached a settlement with Icon in the harassment probe. The firm led by Terrence Lowenberg and Todd Cohen has to pay $300,000 to the state and $200,000 to New York City’s Department of Housing Preservation & Development and the New York City Department of Buildings.

“Tenants in several Icon-owned rent-regulated buildings in the East Village, the Lower East Side and Brooklyn were forced to live in adverse conditions, enduring excessive dust and debris from construction in the building common areas and apartments, inconsistent and irregular heat and hot water, and lack of cooking gas and elevator service for extended periods,” the attorney general’s office said in a press release at the time.

Icon declined to comment on the sale.

With additional reporting by Liam LaGuerre

Source: commercial

Investor Purchases 36-Apartment, UWS Resi Building for $29M

Upper West Side property investor Fine Times has purchased a nine-story, rental building at 110 West 69th Street for $28.9 million from a local family of investors.

The 30,159-square-foot, pre-war property, located between Broadway and Columbus Avenue, is comprised of 36 apartments, according to a release from Cushman & Wakefield.  

Of the apartments, 27 are free market, and one is rent-controlled. The others are rent-stabilized. The average rent is $2,834 per month.

Two of the ground-floor units have been renovated and are duplexed with a basement, and both have access to private gardens. And the remaining 34 apartments are one-bedroom units.

C&W’s Paul Smadbeck, Hall Oster, Teddy Galligan, Conrad Martin and Bryan Smadbeck handed the deal for the selling family and the buyer.

“110 West 69th Street is a genuine boutique trophy located in one of the world’s most desirable residential locations,” Smadbeck said in a prepared statement. “With bonafide near-term upside and prospects for long-term appreciation, the offering attracted substantial interest, which resulted in the property trading for a considerable premium.”

Source: commercial

Pistilli Realty Buys $30M Bronx Rental From Harry Silverstein’s Estate

Pistilli Realty Group has completed the purchase of a 150-unit rental at 1555 Grand Concourse in the Mount Eden section of the Bronx for $29.8 million from the estate of the late Harry Silverstein, who has been ranked the worst landlord in the city.

The sale of the 139,000-square-foot building closed on Wednesday, according to Michael Pistilli, a vice president of Pistilli Realty.

Pistilli Realty, a family-run firm from Astoria, Queens, controls a portfolio of about 6,000 multifamily apartments in the Manhattan, Brooklyn, Queens, the Bronx and White Plains, N.Y. The company already owns nearly 28 buildings with close to 2,000 apartments in the Bronx.

The building at 1555 Grand Concourse is comprised of mostly one- and two-bedroom units. The property has some rent-stabilized units but Pistilli wasn’t sure exactly how many.

While at one nearby building Pistilli Realty owns, the landlord charges about $1,500 a month for one-bedroom units and $1,850 per month for two-bedrooms, at 1555 Grand Concourse there are many tenants paying hundreds of dollars less, Pistilli said.

“It’s just a beautiful property and it has a lot of upside on it,” Pistilli said.

The Real Deal was first to report in July that the building was in contract, and that Eric Silverstein, son of Harry, was selling his father’s portfolio of 14 buildings and nearly 800 apartments in Brooklyn, Queens and the Bronx (which includes 1555 Grand Concourse).

Harry Silverstein was ranked as the worst landlord in the city last year by the office of the Public Advocate Letitia James with 2032 violations. He died late last year, according to TRD. There are 23 open violations at 1555 Grand Concourse, according to the New York City Department of Buildings. Pistilli said his company plans to correct them soon.

Silverstein could not be immediately reached for comment. Mark Steinmetz and Richard Velotta of Meridian Capital Group handled the deal for both sides of the transaction. Steinmetz did not immediately return a request for comment.

Source: commercial

Emerald Equity Buys Four-Building East Harlem Portfolio for $25M

Real estate investor Isaac Kassirer’s Emerald Equity Group continues to look to the East Harlem multifamily market, having acquired a four-building portfolio of mixed-use rental properties in the neighborhood from Castellan Real Estate Partners for $24.8 million, Commercial Observer has learned.

Emerald closed this week on the portfolio, which holds more than 100 residential units and three commercial units, sources told CO. The acquisition consists of three buildings—316 and 322-326 East 117th Street—on the block between First and Second Avenues, as well as 1661 Park Avenue at the corner of East 117th Street.

The buyer paid $15.8 million for the three buildings on East 117th Street, according to sources with knowledge of the transaction. The three properties—two of which are contiguous—span more than 42,000 square feet with 74 rental units as well as two commercial units. Emerald paid another $9 million for 1661 Park Avenue, sources added. That building spans more than 22,000 square feet with 34 rental units plus one retail unit.

Castellan acquired all four prewar, walk-up buildings—where more than 90 percent of the 108 total residential units are rent-stabilized—for a combined $13.5 million in 2013, according to city property records.

“East Harlem is an area that is on the radar of many multifamily buyers and our early entrance into the market allowed us to capitalize on the increased demand,” Etan Slomovic, a managing director at Castellan, said in a statement.

The seller was represented in the transaction by Ariel Property Advisors Victor Sozio, Shimon Shkury, Michael Tortorici and Matthew Gillis.

Sozio told CO that Castellan’s sizable return on its initial investment four years ago is a result of rising property values and increased activity in the Uptown Manhattan multifamily market in that time.

“Especially in East Harlem, there’s a perception that there’s a lot of room for rents to grow and a lot of investment [in the neighborhood] from both the public and private sectors,” Sozio said. “The area has continued to improve since they purchased [the properties].”

Sozio also cited the proposed rezoning of East Harlem that is currently making its way through the city’s public review process as a boon to the neighborhood’s prospects. The rezoning, while controversial, would “add density throughout the neighborhood,” as well as “retail that the area [has been] lacking,” he said.

Kassirer and his firm could not be reached for comment. The Brooklyn-based investor has been active in the East Harlem market as of late, paying Fairstead Capital and E&M Associates nearly $358 million last year to acquire a 47-building, nearly 1,200-unit portfolio of multifamily properties located across the neighborhood.

Source: commercial

Owner of 27-Unit West Village Rental for Six Decades Sells Building for $18M

Source: commercial

Hudson Companies Closes Second Phase of $107M Brooklyn Preservation Project

Source: commercial