Canvas Buys Luxury Downtown Brooklyn Apartment Building for $113M
By Isabelle Durso November 18, 2024 1:15 pm
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Canvas Property Group is taking over The Azure, a luxury residential tower in Downtown Brooklyn.
The property management company bought the 28-story, 150-unit building at 436 Albee Square West in a joint venture with Tokyu Land U.S. from Spencer Equity Group for $112.8 million, according to broker Rosewood Realty Group. The transaction closed at a cap rate of 6.6 percent, Rosewood said.
As the new owner, Canvas plans to rent out the remaining vacant retail spaces on the basement, ground floor and second floor of the building, according to Rosewood’s Alex Fuchs, who brokered the deal for both the buyer and seller along with Ben Khakshoor and Aaron Jungreis.
“We are going to make some changes to some of the common areas, but generally we’ll bring our pretty active management style to the tenancy and create a sense of community that we like to in all of our buildings,” Canvas founder Robert Morgenstern told Commercial Observer.
The current retailers at the building are restaurant KPOT Korean BBQ & Hot Pot, fertility clinic RMA of New York and All in Collectibles, Fuchs said.
A spokesperson for Spencer Equity could not be reached for comment. Blank Rome attorneys Samantha Wallack and Ashley Fleishman oversaw the sale for Canvas.
The 161,262-square-foot Azure, between Fulton and Willoughby streets, opened in 2018 and features amenities such as a 10,000-square-foot gym and a bike room, according to the building’s website.
The Azure is currently fully occupied, Fuchs said. Studio apartments at the building start at $2,600 per month, while one-bedrooms go for $3,100 per month and two-bedrooms are priced at $3,900 per month, the website shows.
The new sale comes after Canvas bought another pair of apartment buildings at 210-220 East 22nd Street in Gramercy Park in a joint venture with Declaration Partners and Tokyu Land U.S. for $104.5 million last month, as CO previously reported.
Those buildings contain a combined 204 units and are 95 percent occupied, CO reported.
Isabelle Durso can be reached at idurso@commercialobserver.com.
