NEW YORK CITY-With demand steadily increasing for new luxury rentals in Downtown Brooklyn, a joint venture between real estate investment firm the Naftali Group and global investment advisor AEW Capital Management have closed on a 90,000-square-foot development site at 316 Bergen St along the borough’s rapidly gentrifying Third Avenue corridor, GlobeSt.com has confirmed. The JV plans to develop an 85-unit luxury apartment building on behalf of AEW Partners VI, LP, the sixth in the firm’s series of opportunistic real estate funds.
A source close to the deal tells GlobeSt.com that the JV is currently negotiating a construction loan with a domestic bank for the luxury apartment building, which upon completion, will include an attended lobby, a tenants-only lounge, a fitness center, 45 parking spaces and a washer/dryer in every unit. Sources say ODA Architecture has been tapped to design the building.
A source says that rents in the building will average around $50 per square foot, and studios will start at $2,000, one-bedrooms at $2,700 and two-bedrooms around $3,500. And while the price of the site sale was not disclosed, Real Capital Analytics lists it as $6.7 million, which was previously owned by Goldport Properties LP.
While the Naftali Group is already in the process of developing a 104-unit luxury rental building down the road at 267 Sixth St. in Park Slope, company CEO and chairman Miki Naftali, says upon being presented with the “unique opportunity” to build on Bergen Street, “we took it.”
“Having AEW partner with us in the venture further supports our belief in the strength of the Park Slope market,” he adds, in a statement. The site is located in walking distance to Prospect Park, a recently approved Whole Foods supermarket and Atlantic Avenue Terminal.
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