South Brooklyn Beachfront Portfolio Hits the Market for $124 M.
Al Barbarino Jan. 30, 2013, 1:10 p.m.
It’s no tropical paradise, but it’s indisputable that South Brooklyn’s beachfront community has plenty of character — and loads of upside, exemplified by a nine-building portfolio that just hit the market for $124 million.
The buildings, along a three-mile stretch of the Brighton Beach, Sheepshead Bay, and Gravesend neighborhoods, house a total of 652 rent-stabilized units and roughly 580,000 square feet.
“It isn’t often that a product with 652 units comes online… and the rents are currently below market so there is an upside,” said Massey Knakal’s Jeffrey Shalom, who is exclusively marketing the property with Brian Hanson and Robert Knakal, adding that the owner is keen on selling the buildings as a single portfolio.
The Manhattan Beach Estates is a beachfront property at the end of Reigelmann Boardwalk, on the eastern edge of Brighton Beach, with 228 units, roughly 206,432 square feet and a $49 million share of the price tag. Unlike the other buildings, which were built to capacity, the property offers almost 43,000 square feet of additional development rights.
The buildings at 79 Brighton 11th Street and 125 Brighton 11th Street, near the inlet between the Gravesend and Jamaica bays, are located two blocks from the beach, with a combined 171 units, a $32 million price tag, and just over 168,000 square feet; while the property at nearby 2835-2875 Ocean Avenue has 200 rental units, roughly 160,000 square feet and a price of $35 million.
Further north, towards the Mapleton and Midwood neighborhoods, sits 357 Avenue P, with 53 units across 42,000 square feet, for $8.1 million.
The buildings are in tip-top condition, Mr. Shalom said, adding that the mechanical systems, apartments, common areas, roofs, and grounds are all well-maintained, and units are renovated with tenant turnover.
They are near the B, F, and Q subway lines, the Belt Parkway and Ocean Parkway, and they are close to the shopping districts along Brighton Beach Avenue and Kings Highway.