Williamsburg Condo-Turned-Rental Sells To Steiners
NEW YORK CITY-Having plunked down $30 million this past November for a development site that eventually will house a 52-story rental apartment tower in Downtown Brooklyn, the Steiner family has set its sights on another neighborhood in the borough. The Steiners have bought Jardin, a two-building rental complex at 142 N. 6th St. in Williamsburg, from Read Property Group in a $38-million deal.
David Behin of MNS, the sole broker on the sale through MNS’ Investment Sales and Capital Advisory division, says in a release that Jardin was conceived as a condominium project. However, he notes that Williamsburg has been experiencing “an unprecedented rental demand,” making the 142 N. 6th project a more profitable investment opportunity in this format.
“We expect to see more deals of this nature in the surrounding area as inventory is tight and investors compete for acquisitions of multifamily buildings,” Behin says in the release. As a case in point, he notes that as of its sale to the Steiners, the 44-unit Jardin was fully leased at an average of $53 per square foot.
“The property was leased up in weeks prior to being marketed for sale, so we see good upside in rental rates,” Douglas C. Steiner, chairman of Steiner Studios, says in the release.
“The building is well-built and has great layouts and design, and the location is fantastic.” Williamsburg’s multifamily sector has already seen a number of sales and financings so far this year.
In May, GlobeSt.com reported that Madison Realty Capital took title to a six-story condo project at 385 Union Ave. for $21.5 million., resolving a troubled situation, while American Realty Advisors acquired a formerly-stalled 62-unit apartment complex at 111 Kent Ave. from Stellar Management for $55.5 million. Two months earlier, Steelworks Lofts, a stalled 110,000-square-foot mixed-use condominium development at 76 N. 4th St., received a jump-start, securing a $28.4-million acquisition and construction loan on behalf of a partnership between Cayuga Capital Management and Jacob Toll, according to Meridian Capital Group LLC, which arranged the 36-month loan.
Also in March, LCOR closed on $50 million in construction financing from Helaba for a new six-story, 234-unit rental property in Williamsburg. LCOR plans to open the property, to be located at 250 N. 10th St., in 2013.Blogs · Magazine · Newspaper