American Realty Advisors Sells 111 Kent at $11M Loss

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American Realty Advisors (ARA) sold its Williamsburg, Brooklyn, luxury rental building to Yihai Group North for a nearly $11 million loss, property records show.

The North American-arm of Beijing-based developer Yihai picked up the 62-unit 111 Kent Avenue between North Seventh and North Eighth streets from ARA for $45.3 million in a deal that closed on Aug. 13 but made public in property records yesterday.

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Representatives from Yihai and ARA did not respond to requests for comment.

JLL (JLL)’s Jeff Julien, Rob Hinckley and Steven Rutman brokered the sale, according to the Facebook page Traded: New York, which first reported news of the deal. A JLL spokesman did not respond to a request for comment.

The Glendale, Calif.-based ARA bought 111 Kent for $56 million from Stellar Management and Largo Investments in 2012, property records show. The purchase marked what was then the highest price per unit paid for a multifamily building in Brooklyn, at about $900,000 per apartment, The Real Deal reported.

The six-story 111 Kent broke ground in 2007 as a condominium building but hit snags during the recession and the original developer defaulted on the loan, according to TRD. Garrison Investment Group picked it up for $43 million in 2010, when only nine condos were sold. 

Stellar and Largo bought it the next year for $24.4 million with the plan to spend $8 million to complete the building, convert it to rentals and sell it to a new owner, TRD reported.

The building has a mix of studio to three-bedroom units with a 784-square-foot one-bedroom unit currently for lease at $4,175 a month, according to 111 Kent’s website.