"The multifamily housing market in Brooklyn is seeing a lot of interest from investors and developers," Scott Jaffee, Vintage's managing director in charge of the firm's subsidized housing division, tells GlobeSt.com. "And throughout the borough, neighborhoods are seeing an upswing in activity for the first time in years, including the area of our recent acquisition."
The 1,050-unit portfolio, acquired by a New York-based investor from Prime Realty, represents one of the largest multifamily transactions in the outer boroughs since Fresh Meadows Apartments with 3,285 units sold in November of 2001. The buildings, which are mostly walk-ups, are located in the Park Slope, Midwood, Flatbush, and Crown Heights sections of Brooklyn.
"Brooklyn is very underrated," Jungreis tells GlobeSt.com. "The properties are well maintained and I think interest will continue to grow."
The seller in the 724-26 DeKalb Ave. deal was a private investment group. The 25,000 sf property comprises four studios, eight four-bedroom apartments, and 23 one-bedroom units, all of which are occupied.
"We are actively seeking similar properties in neighborhoods throughout the city that we feel have a good deal of potential," adds Jaffee. "We're buying well-maintained apartments that will provide us with a steady return on investment."
Dr. Glenn Mueller, a professor in the Berman Real Estate Institute at Johns Hopkins University and director of Real Estate Capital Markets Research, says the hottest products on the market today are multifamily properties. "The one market that's looking good is multifamily. It's the more stable property type. Some are willing to build something now to do better later."
GFI Realty Services, the exclusive broker in first transaction, is the brokerage division of GFI Mortgage Bankers. Jungreis, who has been selling properties with GFI for almost 10 years, also handled the $16.5 million sale of two buildings on Joralemon Street in Brooklyn between Prime Residential and the same purchaser in November of 2002.
The Vintage Group is a Manhattan-based full-service real estate firm that acquires, develops and manages residential properties.
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