NEW YORK CITY-A formerly stalled condominium site in Williamsburg, Brooklyn has officially changed hands. Glendale, CA-based American Realty Advisors has acquired a newly developed 62-unit apartment complex at 111 Kent Ave. from Stellar Management for $55.5 million, according to property records from Real Capital Analytics.
The transaction amounts to nearly double what Stellar initially paid for the property. RCA data shows that the company bought the site for $25.4 million from Garrison Investment Group in March 2011, and after finishing the construction and reaching 100% occupancy, the company achieved a price per unit of $900,000, a source close to the deal tells GlobeSt.com.
The property – located near the East River waterfront, mass transit and ferries – is an area high in demand for residential activity. “The transaction represents Brooklyn’s legitimacy as a destination for institutional investment,” says Will Silverman, corporate managing director of the capital transactions group at Studley, who worked on the deal with executive managing director Woody Heller corporate managing director Eric Negrin and assistant director Daniel Parker. “The caliber of the tenants is at least as good, and in some cases, superior to what you’d find in Manhattan.”
American Realty Advisors, an investment advisor with more than $4.5 billion in assets under management, will continue to build upon the previous owner’s efforts to increase rental rates. “As demand continues pushing out of Manhattan, the prestigious Williamsburg market has emerged as the primary receiver of the growing tenant base,” says Kirk Helgeson, EVP of American, in a statement, noting that the company aims to “capitalize on the market’s escalating rental demand” that “will likely generate favorable returns for our clients during the anticipated holding period.”
A spokesperson for American Realty Advisors did not return a phone call to GlobeSt.com seeking further comment.
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