Lofts 305, a Greenpoint condo-gone-rental built in 2008, is on the market, The Commercial Observer has learned exclusively. Marcus & Millichap Real Estate Investment Services has the $25 million listing.
The seller is represented by Matthew Fotis, a vice president of investments in the Manhattan office of M&M and Shaun Riney and Michael Salvatico—senior associate and associate, respectively, in the Brooklyn office.
“The building owner is McGuiness LLC,” said Bruce Lederman, a partner at D’Agostino, Levine, Landesman & Lederman—the seller’s law firm. He declined to identify them further, citing confidentiality. But he said they were motivated by a red hot market and a listing price that they found attractive.
“The Brooklyn rental market is extremely strong, with vacancies well below 2 percent,” said Mr. Fotis, for his part. “Since this asset’s average rent is currently below market, the new ownership will have the opportunity to increase rents, making this a true value-added play. Furthermore, once 421-a tax benefits expire, condominium conversion will provide an excellent potential exit strategy for a savvy investor.”
Messrs. Riney and Lederman both added that potential increases in capital gains taxes make now a good time to sell real estate, further motivating the seller. “Landlords who wait for the market to climb further could miss out on the favorable cap rate spreads if interest rates unexpectedly spike,” added Mr. Riney.
The 41,355-square-foot building, with a well-documented history in the hyperlocal blogosphere, is located at 305 McGuiness Boulevard in Greenpoint and consists of 38 residential lofts. It was also one of the subjects of this reporter’s final project for a graduate broadcast journalism course in 2009. Behold.