A&E Under Contract to Buy LeFrak Brooklyn Multifamily Portfolio for $250M
The deal comes hot on the heels of the firm’s UWS apartment tower purchase
By Cathy Cunningham April 12, 2022 12:10 pm
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Doug Eisenberg’s A&E Real Estate is under contract to buy a South Brooklyn multifamily portfolio owned by LeFrak for roughly $250 million, sources familiar with the deal told Commercial Observer.
The 14-building portfolio comprises 1,217 units in Brooklyn’s Gravesend and Sheepshead Bay neighborhoods and is 93 percent rent stabilized. Five buildings with 376 units are located in Gravesend and nine with 841 units are in Sheepshead Bay.
Cushman & Wakefield (CWK)’s Adam Spies, Adam Doneger and Daniel OBrien are leading the sale of the portfolio, sources said.
The largest assets trading hands are the 134-unit Dover building at 2375 East 3rd Street in Gravesend and the Hollywood and Bel Air buildings at 2750 Homecrest Avenue and 2775 East 12th Street, respectively, each 189 units. The 14 assets are located within a 10-minute drive of one another.
LeFrak has owned the apartment buildings since they were constructed, between 1957 and 1961. Over the past five years, roughly $18 million has been invested in property upgrades including lobby renovations and roof replacements. The portfolio will sell completely unencumbered by debt, sources said.
A&E continues to amass a significant multifamily portfolio in New York City.
Last October, the firm closed on its acquisition of 400 East 57th Street, a 19-story multifamily building in the Sutton Place neighborhood, from SL Green Realty Corp., and it’s been an active start to the year for the firm.
Earlier this year,A&E acquired Cunningham Heights, a residential community in Queens Village, for $130 million. The deal on the 22-building 1,056-unit, garden-style property marked the largest Queens multifamily deal since the onset of the pandemic. And, only last week, it was announced that the firm had purchased the Upper West Side apartment tower at 140 Riverside Boulevard for $266 million from Sam Zell’s Equity Residential.
Officials at A&E and C&W declined to comment. LeFrak officials weren’t immediately available for comment.
Cathy Cunningham can be reached at ccunningham@commercialobserver.com
