$60M sale of Bay Ridge, Midwood portfolio sets record November 14, 2014

Off-market transaction works out to $232,000 per unit — a new high for the area

October 29, 2014 02:33PM
By Claire Moses

Brooklyn-based Landau Real Estate bought a four-building portfolio in Bay Ridge and Midwood for $60.3 million in an off-market deal.

At $232,000 per unit, the sale marks the priciest to date in the area. The portfolio includes 465-476 84th Street in Bay Ridge, as well as Midwood-located buildings at 2566 Ocean Avenue, 1745 East 12th Street and 1811 Quentin Road. The buildings are roughly 60,000 square feet each.

J. Halpern and Son is the seller of the family-owned buildings. The properties were acquired by the Halperns between 1935 and 1962. It’s the first time the buildings have been traded. The sales price represents more than 15 times the rent roll.

“We haven’t seen anything trade at this price in these areas,” said Daniel Shragaei, associate director at GFI Realty. GFI’s Shragaei and Yosef Katz represented both the seller and buyer in the transaction.

The multi-family buildings include rent stabilized units and fit with the new owner’s portfolio. Landau owns several other buildings in the borough.

The 260 units in the buildings are one-, two- and three-bedroom apartments. Similar packages don’t often hit the market, Katz said, which led the buyer to act quickly.

“You don’t really get these opportunities in Brooklyn,” Katz said.

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