Urban American Sells Brooklyn, SI Portfolio For $236M
Lauren Elkies Schram March 17, 2015, 3:40 p.m.
After four rounds of bidding, Peter Rebenwurzel‘s Coney Realty Group and David Malek‘s Malek Management have purchased a 15-property residential rental portfolio from Urban American in a $236 million deal that closed last week, Commercial Observer has learned.
The primarily rent-stabilized multi-family properties span 1.5 million square feet and include 1,434 units, seven of which are in North Central Brooklyn, and another seven of which are in South Central Brooklyn. The portfolio also includes a garden apartment complex in the Oakwood section of Staten Island, according to Eastern Consolidated.
The two largest buildings in the portfolio are a 178-unit property at 2425 Nostrand Avenue in Midwood in Brooklyn, and the 176-unit complex at 2838-2868 Hylan Boulevard in Staten Island’s Oakwood neighborhood.
Eastern Consolidated’s Peter Hauspurg, David Schechtman, Peter Carillo and Marion Jones (who has since joined Ackman Ziff) represented Urban American in the deal. Colleague Lipa Lieberman represented the buyers.
“Coney Realty Group and Malek Management are well positioned to populate all of the units at full legal rents, maximizing on their investment,” Mr. Lieberman said in prepared remarks.
Urban American has invested more than $13 million in major capital improvements across the portfolio since August 2007, Eastern Consolidated said. Urban American bought the portfolio as part of a larger package from The LeFrak Organization for $251 million, as The Real Deal reported last November when the deal went into contract. While at CBRE in 2007, Ms. Jones was on the team that represented Lefrak in the portfolio sale to Urban American.
The buildings are 99 percent occupied.
“This is an incredibly large, stable portfolio with high occupancy and strong in-place income with units across a broad cross-section of the most ascendant New York City borough,” Mr. Schechtman said in prepared remarks.
Coney Realty Group and Malek Management together or individually manage over 5,000 residential units in Brooklyn and Washington Heights, Mr. Lieberman told CO.