Downtown Brooklyn Multifamily Asset Trades for $142M

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The Dermot Company in partnership with USAA Real Estate and PGGM has purchased a two-building luxury apartment asset with ground-floor retail space in Downtown Brooklyn five and half years after it was last sold for $12 million higher. 

The joint venture acquired the 271-unit property known as  The Addison from BentallGreenOak (BGO). The sales price was $142.3 million, sources told CO. Capital One provided acquisition financing for the deal with the loan amount not provided.

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A BGO fund, Multi-Employer Property Trust, previously bought the 2011-built structure in late 2016 for $154.3 million from Waterton Associates

“This transaction represents Capital One’s commitment to financing attractive, well-located multifamily assets in markets such as Brooklyn,” Prithvi Mohan, senior vice president of commercial real estate at Capital One, said in a statement. “We were pleased to work alongside a team of experienced, institutional sponsors with a strong business plan for the property.”

JLL Capital Markets marketed the property on behalf of BGO with a team led by Jeffrey Julien, Rob Hinckley, Steve Rutman, Paul Spellman and Jonathan Faxon. A JLL capital markets debt & advisory team of Spellman, Steven Klein and Christopher Pratt arranged the Capital One loan.

“The Addison is a terrific property in a rapidly evolving neighborhood in which we have many years of experience,” Andrew Levison, partner and managing director at The Dermot Company, said in a statement. 

Located at 225 Schermerhorn Street, The Addison features 65 studios, 117 one-bedroom and 89 two-bedroom apartments in two residential towers. The property also consists of three ground-floor retail spaces and a below-grade structured parking garage with 109 parking spaces. 

On the northern edge of Brooklyn’s Boerum Hill neighborhood, The Addison is situated directly above the Hoyt-Schermerhorn subway station, which services the A, C and G lines. It is also a few blocks from the Barclays Center, which opened in 2012 and is home to the NBA’s Brooklyn Nets and WNBA’s New York Liberty

“There has been unprecedented investment of capital in downtown Brooklyn in recent years, transforming the submarket into an entirely new neighborhood,” JLL’s Julien said in a statement. 

Andrew Coen can be reached at acoen@commercialobserver.com