Reda Holdings Scores Williamsburg Apartment Building for $35M
Kushner Companies is letting go of a rent-stabilized apartment building in Williamsburg, Brooklyn.
Reda Holdings, a privately held investment firm, bought the seven-story property at 50 North First Street for $34.93 million from Kushner, according to TerraCRG’s Daniel Lebor, who brokered the sale for Kushner with colleague Matt Cosentino.
Reda scored the 54,698-square-foot property for not much more than the $33.8 million Kushner spent to acquire it a decade ago, and landed $23 million in financing from Amalgamated Bank for its purchase, according to a spokesperson for Reda and The Real Deal.
Reda doesn’t plan to make any major changes to the property or its 46 one-, two- and three-bedroom units, which are all rent-stabilized until 2038 under the state’s now-expired 421a program, according to the spokesperson. State law changes in 2019 made it more difficult for landlords to raise rents in stabilized buildings, even if money was spent to improve the property.
The deal adds to the handful of other multifamily assets Reda owns in Manhattan, including the mixed-use Financial District building at 25 Peck Slip that it acquired last year. And Williamsburg is a strong neighborhood for any multifamily investor, Lebor said.
“Whenever there’s an opportunity in Williamsburg, there’s a lot of people, both local and international people, who are interested in looking at the deal,” Lebor said. “It’s a strong market with strong rents.”
Alongside Lebor and Cosentino, Rosewood Realty’s Aaron Jungreis, Ben Khakshoor and Alex Fuchs represented Kushner in the deal. Representatives for Rosewood and Amalgamated Bank did not immediately respond to requests for comment.
(Disclosure: Joseph Meyer, chairman of Commercial Observer owner Observer Media, is married to Nicole Kushner Meyer, president of Kushner Companies.)
Celia Young can be reached at email@example.com.