Stuyvesant Heights Apartment Property Trades for $23M
A joint venture between The Carlyle Group and Z+G Property Group has paid $22.5 million to acquire a luxury multifamily property in Stuyvesant Heights, Brooklyn, that was previously a Catholic school, Commercial Observer has learned.
Bushburg acquired the 50,000-square-foot property — which was previously the Holy Rosary Catholic School — in 2011 for $2.4 million and undertook a historic renovation of the 1922-built building. The schoolhouse, which closed in 1995, was converted into a luxury residential community by Bushburg after lying vacant for 16 years.
Cohen said that high demand for rental housing in Brooklyn, leading to rents of more than $70 per square foot at 180 Bainbridge, enabled the property to sell at around a 5.7 percent cap rate, lower than the 6 percent cap rates other typical multifamily buildings are going for now.
“Rents have gone up significantly over the last couple of years in these neighborhoods and, despite the fact that interest rates are much higher today than they were two years ago, the overall price of the property did not get affected,” Cohen said. “The rents have gone up so much that we can make this transaction work at around the same level that we would have made more than two years ago when interest rates were lower.”
As part of the historic preservation, Bushburg repurposed the building with Renaissance Revival-style architecture and Collegiate Gothic detailing. The property’s amenities include a game room, gym, yoga studio, sauna and library.
Spokespeople at Carlyle and Z+G did not immediately return requests for comment.
Andrew Coen can be reached at email@example.com.