NEW YORK CITY-American Realty Capital New York Recovery REIT, Inc., a non-traded real estate investment program part of American Realty Capital, has closed on the acquisition of 50 rental units and a 36-space parking facility at 163 Washington in the Clinton Hill section of Brooklyn, according to a company statement on Tuesday morning. The building -- developed by GLC Group -- traded for $31.5 million.
With the acquisition of the 17-story luxury multifamily building, the company is further expanding its footprint throughout the five boroughs, bumping its portfolio to 12 properties total and $213.1 million in dollar volume. Recently, the REIT also acquired four retail condominiums at the base of One Jackson Square at 122 Greenwich Ave. in the Village from sellers RFR Realty and Hines and a Duane Reade Pharmacy at 163-30 Cross Bay Blvd. in Howard Beach, Queens from Wharton Properties.
Michael A. Happel, Chief Investment Officer of ARC’s New York REIT, says in a statement that the acquisition is consistent with the company’s overall strategy of acquiring high quality, income-producing real estate in New York City. “We are excited to be acquiring this newly built, class A quality apartment building in the Clinton Hill neighborhood of Brooklyn, New York and to be working with A&E Real Estate Holdings, an experienced owner/operator of multifamily properties, as our partner,” he says.
At the time of the filing, the 50 rental units are 80% leased. As GlobeSt.com previously reported when the building went from condo to rental last year, monthly rents at 163 Washington begin at $1,850 for studios, $2,500 for one-bedroom, $3,300 for two-bedroom and $4,800 for penthouse homes. The property boasts quick access to Fort Greene Park, Pratt Institute and several major subway lines on Lafayette Avenue.
David Maundrell, founder and president of aptsandlofts.com—the residential brokerage that markets the units—told GlobeSt.com last spring that Clinton Hill is on the rise in terms of rents and developer interest. “It’s a neighborhood that’s on the brink of exploding in the sense where it has a great vibe, a great community feel to it and it’s typically less expensive than, say, Downtown Brooklyn or Flatbush Avenue,” he says. “The phone has been ringing off the hook.”
The site features amenities such as a fitness center, 5,000-square foot great lawn off the second floor and balconies in most units. And with the building’s core demographic at 27 to 35 year-olds, many find it as an attractive option. “Brooklyn is an alternative to Manhattan not only in terms of price--and this neighborhood is between Fort Greene, Williamsburg, Downtown Brooklyn and DUMBO,” Maundrell says. “It’s the entire package.”
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