Harbor Group International Snaps Up Moskovits’ 564 St. John’s Place for $118.5M
By Cathy Cunningham July 9, 2019 12:00 pm
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Toby Moskovits and Michael Lichtenstein have sold their multifamily property at 564 St. John’s Place to Harbor Group International (HGI), Commercial Observer has learned. Total proceeds from the sale were $118.5 million, which includes the $117 million acquisition price plus a $1.5 million reimbursement for mortgage tax.
The deal closed yesterday, sources said, and was brokered by Westwood Realty Associates.
Also known as The Frederick, the Class-A asset—located in Brooklyn’s Crown Heights neighborhood—comprises 193 luxury apartments. Amenities include a rooftop deck with views of Downtown Brooklyn and Manhattan, a fitness facility, onsite parking and a tenant lounge.
Moskovits completed the property’s construction in 2017 and successfully stabilized its occupancy during 2018, which laid the ground work for a sale to HGI at a very competitive price, sources said.
Interior units at 564 St. John’s Place feature 9-foot ceilings and solid maple hardwood floors. Each unit has a washer and dryer, and several have balconies. The property sits in close proximity to Prospect Park in addition to several subway lines.
“St. John’s is a unique 200-unit building that was built in keeping with character of the neighborhood,” Moskovits told CO today. “The brick and brownstone design makes our building an integral part of the neighborhood, and the art deco-inspired interior design of the units reflects the history of this neighborhood as a place for young families starting out their life journey in this area since the 1800s. My partner Michael and I built a building that will stand for generations. We are pleased to have sold it to Harbor Group—an operator of distinguished properties with a track record of decades, who will keep the legacy of this building going for many more years to come.”
“The purchase of The Frederick in the growing Crown Heights neighborhood underscores Harbor Group International’s commitment to investing in high-quality assets within well-located areas,” Jordan Slone, the CEO of HGI, said in prepared remarks shared with CO. “With this property, we continue our key objective of acquiring multifamily properties in top-tier markets, especially in areas with strong development and growth potential.”
As previously reported by CO, Heritage Equity Partners’ Moskovits and Lichtenstein were locked in a legal battle with previous construction and mezzanine lender Benefit Street Partners last year over the asset. The borrowers staved off a UCC foreclosure auction by refinancing the property with a $97 million loan from Arbor Realty Trust (ABR) in August.
It’s been a busy few weeks for Moskovits and Lichtenstein; they’re also in the process of finalizing a $76 million refinance of the Williamsburg Hotel in Brooklyn, as previously reported by CO, plus a $38 million refinance of an office redevelopment project at 215 Moore Street in East Williamsburg, Brooklyn. Red Hook, Brooklyn-based CREMAC Commercial Finance is the new lender in both transactions.
Officials at HGI did not immediately respond to requests for additional comment.
