Resurgence Of Flatbush Exerting Positive Market Pressure
Flatbush is diverse in every way imaginable—socioeconomically, generationally, ethnically and ideologically. Its physical landscape—the architecture and buildings—is just as diverse as its residents, with a mix of pre-war apartments, Victorians and colonials, street-level retail that includes discount stores and delis, the freshly renovated Kings Theatre and a variety of stand-alone buildings.
Residents, drawn by the promise of relatively larger and more affordable spaces, harmoniously intermingle, participating in vibrant communities with identities that reflect the best aspects of those who comprise them. The Flatbush neighborhood has displayed a remarkable resurgence in recent years, and real estate pros are eager to capitalize on it.
As evidence, the CPEX multifamily and mixed-use sales teams recently sold a three-building portfolio in Flatbush for $12M at a stunning 14.5 gross rent multiple, defying the seasonal slump. CPEX managing partner Tim King calls the deal a “sizzling sale in the heat of the summer doldrums.”
The three buildings, at 4202 Church Ave (above), 2810 Foster Ave (below) and 175 Lott St (farther below), are geographically dispersed within the neighborhood. The portfolio boasts 67 rent-stabilized apartments and five retail storefronts.
CPEX’s multfamily sales team, comprised of associate director Stephen Safina and associates Alyona Chystyakova and Thomas Ryan, and CPEX’s mixed-use team, consisting of associate director Lawrence Sarn and associate Bryan Hurley, repped the seller and procured the buyer.
“Our sale of the Flatbush portfolio at a 4.58% cap rate emphasizes the continued demand to purchase rent-stabilized multifamily assets and further supports the strength and stability of the Brooklyn multifamily market,” Safina says.
“There was no more powerful voice expressing the rebirth of Flatbush than when Diana Ross performed at the reopening of Kings Theatre last year,” Tim added.
The 3,000-seat movie palace, opened in 1929 and shuttered in 1977, was a neighborhood icon and a symbol of both the glory days of Flatbush and its decline. Now freshly renovated, it is a potent symbol of the neighborhood’s revitalization.
To learn more about CPEX, click here.