Brookfield Selling Brooklyn Property It Inherited From Forest City For $130M
Brookfield is reportedly selling its office condominium at 12 MetroTech in a deal that values the property at almost $700 per SF.
Hedge fund Davidson Kempner and local real estate investor 60 Guilders have partnered to put the space at the top of the building under contract for $130M, The Real Deal reports. Forest City developed the mammoth MetroTech complex decades ago, and Brookfield acquired it three years ago as part of its $6.8B purchase of the REIT.
The condo in 12 Metrotech spans seven floors and was put under a long-term lease to the city's Administration for Children’s Services in 2019. A Cushman & Wakefield team led by Adam Spies and Adam Doneger marketed the space, which sits above a state court facility.
Like much of the city, Brooklyn has experienced a sluggish investment sales market through the coronavirus pandemic. Some $619M worth of commercial properties were sold in the first quarter of the year, a 59% drop from Q1 2020, according to local real estate firm TerraCRG. Other major trades in the borough were the sale of GFI’s 61 Bond St. to iStar for $45M and United American Land’s $23.2M purchase of 80 Willoughby St. from the Sisters of St. Joseph.
The office market in the borough, which has seen an enormous jump in supply in the last few years, is also slow. Office leasing was 43% below the five-year average, per The Real Deal, citing CBRE data.