KKR Under Contract For $860M Brooklyn Apartment Buy
KKR Realty is set to make one of New York's biggest real estate investments this year in the Brooklyn multifamily market.
The company is in talks to purchase an $860M portfolio in the outer borough from Bruman Realty, Bloomberg reported. A previous report identified KKR's minority partner in the deal, Dalan Management, as the buyer and the price as $1.25B, $390M more than Bloomberg reported Friday.
The portfolio includes 1,275 units in Williamsburg, Greenpoint, Bushwick and Bedford-Stuyvesant, including 260 Gold St., 1056 Manhattan Ave., 340 Evergreen Ave., 889 Bushwick Ave., 93 Linden St., 23 Menahan St., 75 Ralph Ave., 1873 Atlantic Ave., 1428 Fulton St., 1134 Fulton St. and 296 Wythe Ave. in Williamsburg, The Real Deal reported last month.
The blockbuster deal comes amid a turbulent rental market in Brooklyn and beyond. From March to June, rent prices in the borough dropped 5.7%, according to analysis by MNS. This is the second-largest drop in rent out of the five boroughs after Manhattan, where rents dropped 6.4% over the same period. Brooklyn rent rates fell 4.4% year-over-year from $2,985 to $2,853, according to MNS.
As wealthy people and young people flee the city in droves amid the coronavirus pandemic, apartment demand has dropped dramatically, sources told Bisnow last week, leading to historically high vacancy rates.
Still, multifamily, with rent collections remaining relatively high compared to most other asset classes, is largely considered to be one of the safest investments to make, as demand for housing doesn't fall with the economy.
Contact Kelsey Neubauer at firstname.lastname@example.org.