Newmark Holdings, in conjunction with real estate fund KABR Group and private equity firm Twin Oaks Equity Partners, purchased 7 Bushwick Place, a 71,000-square-foot property in Brooklyn for $12.5 million, according to a press release issued by Newmark Holdings.
The three-story building, which also includes a basement, has been converted from garment manufacturing use to a food manufacturing facility by the previous owner, a private New York family which declined to be identified.
Newmark Holdings noted that the entire building is leased to Twin Marquis Inc., a subsidiary of one of Korea’s largest companies, which has been in the space for nearly a decade. It will continued to be used as a food manufacturing facility at least through the end of Twin Marquis’ lease, which will be in eight years.
Brian Steinwurtzel and Eric Gural represented Newmark Holdings in the transaction, which closed in November. KABR and Twin Oaks, with whom Newmark Holdings purchased the property, represented themselves.
“Adam Altman [of KABR] and William Yagoda [of Twin Oaks] found the property,” said Mr. Steinwurtzel. “They had been looking for assets to buy. They found that this one was for sale in an off-market transaction.”
Mr. Yagoda and Mr. Steinwurtzel had gone to business school at Columbia together, and Mr. Altman and Mr. Steinwurtzel had previously done deals together.
Mr. Steinwurtzel said that Bushwick today reminds him of the Soho of the 1970s and 1980s.
“Most of the buildings that we own in Union Square [and] Hudson Square, began as manufacturing buildings,” said Mr. Steinwurtzel. “This area is undergoing the same transformation [as these neighborhoods did],” he noted. Mr. Steinwurtzel stressed he saw in the building not what it looks like today, but what it will look like in the future.
“We liked it right away because we knew when [Twin Marquis’] lease is up, we can redevelop the property into a modern office and retail building. And if they choose to stay, we have a credit tenant for the foreseeable future,” he said.
Pinnacle Realty of New York’s Paul Bralower and David Junik and Greiner-Maltz’ Eitan Agbashoff and Charles Wong represented the seller.
“This was a great purchase for a real hot neighborhood and there will be tremendous upside down the road when this tenant vacates,” said Mr. Junik. “The client is very aware of this [and] made the sale for his own internal reasons and he’s gotten a very, very good price for this particular market.”
Mr. Junik added it was sold at a low-cap rate.