GRJ Borrows $45M for Brooklyn Multifamily Acquisition

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Valley National Bank has lent $44.7 million for the acquisition of a pair of rental apartment buildings in the Crown Heights area of Brooklyn, according to documents that appeared in city property records today.

SEE ALSO: Signature Lends $40M on Inwood Multifamily Portfolio

GRJ Real Estate, led by brothers Graham Jones and Gregory Jones, picked up the duo of six-story properties from Sentinel Real Estate on Feb. 28 for a total of $53.3 million, The Real Deal reported. The two buildings’ 125 apartments apartments—75 units at 921 Washington Avenue and 50 more at 941 Washington Avenue—include 71 that are rent-stabilized.

A grocery store called Wholesome Foods leases 3,000 square feet on 941 Washington’s ground floor.

Directly across from the Brooklyn Botanic Garden, the buildings stand in a neighborhood that has supported steady residential rent appreciation in recent years. Data from research firm MNS show that as of last month, housing costs had risen 4 percent in Crown Heights year-over-year, following 2.2 percent growth in 2017 and nearly 10 percent growth the year before that.

Listings on StreetEasy show an asking monthly rent of $2,350 for a 680-square-foot one-bedroom unit on the first floor of 921 Washington, while a two-bedroom went for nearly $3,500 a month late last year.

Representatives for Valley National Bank, GRJ Real Estate and Sentinel Real Estate were not immediately available for comment.