According to reports, an Israeli investor group with several Brooklyn holdings recently paid an impressive $811 per square foot for a park slope apartment portfolio, creating a new neighbourhood record for a multi-family building!
The walk-up buildings were initially purchased by RedSky Capital in two separate transactions in the year 2011 and 2012 at a combined rate of $16.6 million. After necessary touch ups and renovations, the buildings were then put up on the market for $41 million this January. Ofer Cohen and Adam Hess of TerraCRG brokered deal. TerraCRG is a commercial brokerage and advisory firm dedicated solely to commercial transactions in Brooklyn.
Hess and Cohen represented the sellers, RedSky Capital and Megalith Capital Management, as well as the buyer.
Park Slope has remained one of the most desired neighbourhoods within Brooklyn, ranked number seven in price per s/f and averaging $51 per s/f for rentals.
“We had almost 30 investors bidding on the 8th Avenue portfolio and the ultimate buyer, who plans to add five additional duplexes to the buildings, will profit handsomely as rents continue to rise in Park Slope,” Hess added.
Hess and his team also announced that 181-182 Prospect Park West, a 34-unit property directly across from Prospect Park, is in contract to a “high net worth” investor making his first foray into the borough. The 8th Avenue portfolio and Prospect Park West properties are all within one block of Prospect Park, representing an unusually large number of units on the market in prime Park Slope.
“I think that ultimately (properties in Park Slope) will trade at these levels or higher,” Hess told Real Estate Weekly.
About Megalith Capital:
Megalith capital Management was founded in 2009 by Samveer Sidhu in collaboration with Bhanu Choudhrie, Executive Director, C&C Alpha Group, and The Imperial Development Group. It is a real estate owner and developer focused on investments in New York City.