TF Cornerstone Expands Brooklyn Footprint With Purchase of The Berkley

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TF Cornerstone has closed on a deal to acquire a North Williamsburg, Brooklyn, residential tower for $71 million from Trinity Place Holdings, according to both parties.

The Berkley, located at 223 North 8th Street, is a 95-unit multifamily development with 19 apartments listed as affordable. The deal follows  TF Cornerstone’s purchase of 250 North 10th Street in January 2020 for $138 million.

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“We took advantage of the current market to make this opportunistic sale,” Matthew Messinger, CEO of Trinity Place Holdings, said in a statement. “This further bolsters our investment thesis that even when interest rates are volatile and rising, high-quality multifamily assets in prime New York City neighborhoods remain in strong demand.”

After taking a hit in terms of vacancy at the height of the pandemic, The Berkley has recovered, with net effective rent growth of almost 20 percent on new leases and 99 percent occupancy over the last 12 months, Trinity Place Holdings said.

Trinity Place Holdings acquired the North 8th Street building in a joint venture with Pacolet Milliken in December 2016 for $69 million, according to property records.

“As the pandemic wanes, TF Cornerstone is resolute in our belief that New York City will continue to thrive and outperform other cities’ rent growth and occupancy rates,” Zoe Elghanayan, senior vice president of TF Cornerstone, said in a statement.

Steering the deal on behalf of the seller was JLL’s Jeffrey JulienRob Hinckley, Steven Rutman, John Taylor
and Joy Ryoo.

“The Berkley presented a rare opportunity to acquire an institutional, boutique residential property with
rent upside potential in a highly desirable and proven submarket,” Julien said in a statement.

With about 90 percent of the units featuring outdoor space, the condominium-style apartments feature Miton kitchens with Bertazzoni and Bosch appliances, Fisher & Paykel refrigerators, hardwood flooring, walk-in closets and individual central air systems, according to TF Cornerstone. 

The building has a rooftop lounge, a two-story fitness center, a yoga lawn, tenant storage, bike storage and a parking garage.

Mark Hallum can be reached at mhallum@commercialobserver.com.