NEW YORK CITY-In their first of several upcoming collaborations, two developers announced Thursday they have sold a mixed-use property they created, in the Williamsburg section of Brooklyn, for $28.75 million to an undisclosed purchaser. In a joint venture the two firms, Silverstone Property Group and Adam America Real Estate Group, developed 65-69 North 6th St. after purchasing the stalled development site from its prior owner. It is comprised of 28 rental apartments and 4,000 square feet of ground-floor retail space, and offers 14 off-street parking spaces.
Silverstone and Adam America together are developing a new 170-unit rental property on North 7th/North 8th Streets in Williamsburg and a 70-unit condominium building on Water Street in DUMBO.
The deal at 65-69 North St. was brokered by Steven Vegh of Westwood Realty Associates, representing both the sellers and the purchaser. The developers reworked the previous owner's plans for a 24-unit condo, reconfiguring the project as a 28-unit luxury rental building with a significant retail component, according to the announcement. Construction began in August 2011 and, by September 2012, construction was completed and the property was fully leased.
The two decided to change course because of market conditions when they bought the property, Martin Nussbaum, a principal at Silverstone, tells GlobeSt.com. “At the time of the acquisition, the rental market was very strong and the condo market was weak. We felt the conversion to rentals was the safer and more profitable direction to go.”
The building's leasing campaign went quickly, with 50% of the apartment units rented in a single day and 100% rented within 30 days of the building's opening. At the time 65-69 North 6th Street achieved the highest residential rents (over $65 per square foot) in the Williamsburg market.
“We're pleased with every step of our execution of this project, from start to finish,” says Martin Nussbaum, principal, Silverstone Property Group, in the release. “The results speak for themselves, in the value we created and then realized through this disposition.”
Adds Dvir Cohen Hoshen, principal, Adam America. “The development team identified a stellar Williamsburg location and delivered units that were appealing to our target market, all on or ahead of schedule. We look forward to further activity in Williamsburg.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
