Brooklyn's 15 Biggest Sales of 2014
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Tickets to the Elton John New Year's Eve concert at the Barclays Center aren't the only things going for a pretty penny in Brooklyn. We compiled some of the biggest deals in the borough, thanks to our friends at RCA. (Note: These are YTD as of Dec. 15, so you still have a few days to knock these off the list.)
1) Urban America Portfolio, $236M
The pending purchase of the Urban America multifamily portfolio by Coney Realty Group, which RCA tags at $236M, leads this year’s sales. The Real Deal reported last month that the transactions includes a total of 1,434 apartments across 14 properties in Brooklyn and a garden apartment complex in Staten Island. The two biggest: a 178-unit property at 2425 Nostrand Ave in Midwood (above, looking down the street) and a 176-unit complex at 2838-3868 Hylan Blvd in Staten Island.
2) Hudson Realty Capital Portfolio Buyout, $208M
In March, Pinnacle Group bought out the interests of its equity partner, Hudson Realty Capital, in 26 apartment buildings. The buildings have 20 to 100 units each and are located in various neighborhoods around Brooklyn. Many are situated around Crown Heights and Prospect Park South (above, the park itself), according to The Real Deal. RCA data shows the portfolio totals 1,612 units.
3) 470 Vanderbilt Ave, $195M
In February, a JV of RXR Realty and American Landmark Properties purchased the 10-story, 650k SF 470 Vanderbilt Ave office building for nearly $195M from owner GFI Realty Services and equity partner Starwood Capital. The deal was RXR’s first NYC acquisition as part of its New York Metro Emerging Submarket Initiative, which focuses on undervalued neighborhoods that are well-positioned geographically and demographically in the outer boroughs and suburban downtown districts located around transit hubs. The property, which faces the Atlantic Yards site, was built in 1913 and underwent a $74M renovation in 2012.
4) B2 BKLYN, $158M
In October, Forest City Enterprises acquired the interest of equity partner Arizona State Retirement System in the 363-unit B2 BKLYN modular apartment building at Pacific Park Brooklyn. RCA pegs the deal at $158M; Forest City paid $40.5M for the equity interest and also assumed ASRS’ share of the debt. The investment makes Forest City the 100% equity owner of B2, where construction had shut down due to litigation between the company and construction contractor Skanska USA. In November, Forest City bought out Skanska, but The New York Observer reports that as of Monday, construction has still not resumed.
5) The Chocolate Factory, $86M
In August, a JV of Brickman Associates and HK Organization bought The Chocolate Factory at 275 Park Ave, Clinton Hill from Alex and Mira Goldin for $68M. The property consists of seven contiguous buildings and features 123 loft apartments, ground-floor retail and parking. The building was once owned by Rockwood & Co Chocolate, for decades one of the largest candy makers in the country. The building was converted in 2002.
6) Kingswood Plaza, $80M
In August, A JV of Infinity Real Estate and Nightingale Properties bought the 230k SF Kingswood Plaza at 1630 E 15th St from AVR Realty, which The Real Deal reports went for nearly $80M. The property, built in 2007 and near the Kings Highway subway station, includes a T.J.Maxx and NY Sports Club, medical tenants and 250 underground parking spaces. Also included in the sale was a 22k SF development site that had a 300-space parking garage; the parcel came with as-of-right commercial or multifamily development rights.
7) Bay Ridge and Midwood Multifamily Portfolio, $60M
In October, an undisclosed seller purchased four six-story elevator multifamily properties totaling 260 units: 465-476 84th St in Bay Ridge, and 2566 Ocean Ave, 1745 E 12th St (above) and 1811 Quentin Rd in Midwood. The off-market transaction repped a record price for the areas of $232k/unit, according to GFI Realty Services, which brokered the sale. The buildings ranged from pre-war to 1962 vintage and were originally constructed by the seller, making it the first change in ownership for the properties in as many as 75 years.
8) The Standish, $60M
In June, Westbrook Partners purchased the The Standish at 169 Columbia Heights from Taurus Investment Holdings for approximately $60M, according to The Real Deal. Taurus purchased the building, the former Standish Arms Hotel, in 2007 from the Jehovah’s Witnesses for $50M, then converted it to luxury apartments. It’s only one of the many Brooklyn buildings the religious group has sold off; above, RFR, Kushner Cos, LIVWRK and Invesco are transforming much of its massive complex into creative office campus Dumbo Heights.
9) Colony 1209, $58M
In April, Spruce Capital Partners purchased the five-story, 127-unit Colony 1209 at 1209 DeKalb Ave in Bushwick from Read Properties for $58M. The complex features a 24-hour doorman, gym, billiard lounge, screening room, landscaped courtyard and communal roof deck, among other amenities. As of last month, the building is back on the sale block for $81.5M through Massey Knakal (soon to be part of Cushman & Wakefield).
10 & 11) The Bergen and Rocket Factory Lofts, both $52M
Wednesday, The Naftali Group announced it had sold The Bergen (above), a luxury rental apartment building at 316 Bergen St, Boerum Hill, for $52M. The eight-story building features a mix of studios and one- and two-bedroom apartments, with amenities like a landscaped roof deck with cabanas, private dining areas, an outdoor shower and BBQ. And in August, Meadow Partners purchased the 75-unit Rocket Factory Lofts at 98-106 South 4th St, Williamsburg from a JV of Israel Perlmutter and Menachem Stark for approximately $52M, according to RCA. Meadow Partners managing director Jeff Kaplan told MHN that it was one of the few authentic loft conversions in the area and features a mix of one- and two-bedroom units; a large renovation is underway.
12 & 13) 340 Flatbush Ave Extension and 200 Brighton 15th St, both $43M
In May, a JV of the Chetrit Group and JDS Development bought the 68k SF 340 Flatbush Ave from Abraham Leser for $43M, according to RCA. (Above, we snapped JDS founder Michael Stern, right, with Naftali Group CEO Miki Naftali at our NYC Multifamily Summit earlier this year.) Sources told The Daily News that the developers planned to raze the old office building for multifamily. And in January, Newcastle Realty Services purchased the 228-unit 200 Brighton 15th St from Davis Management Associates for approximately $43M, according to RCA.
14) 420-428 Albee Square, $39M
Earlier this year, JEMB Realty picked up three adjacent lots in Downtown Brooklyn with a combined footprint of 11k SF. Previously used as a parking lot, the now-vacant site is ripe for approximately 190k SF of commercial or residential use. CPEX's New York development and conversion investment sales team brokered the deal, which required the lease buyout of the existing tenant running the parking lot. In September, JEMB filed permits to build a 65-story building on the site, reported New York YIMBY.
15) 141 Willoughby St, $28M
In January, Savanna bought the 44k SF, three-story 141 Willoughby St from the Institute of Design and Construction for approximately $28M, according to RCA. (Above, we snapped firm managing partner Chris Schlank at our recent NYC Construction & Development Summit.) At the time of sale, Crain’s reported that the site could support a fresh development up to 240k SF.