NEW YORK CITY-BRG has bought 561 units across a 19 building portfolio in the Queens neighborhoods of Jackson Heights, Elmhurst and Corona for over $68 million. The company clearly likes the area—it owns approximately 1,500 units in the immediate vicinity.
The seller, a real estate investment group, was represented by two brokerage firms: Ariel Property Advisors and Rosewood Realty. Ariel's Shimon Shkury, president, and VPs Michael Tortorici, Victor Sozio and Jonathan Berman and Randy Modell represented the seller on five of the buildings—with 311 units that sold for approximately $38 million–while Aaron Jungreis, president, Rosewood represented the same seller on a portfolio of fourteen buildings with 250 units that sold for over $30 million.
Says Shkury, “It's rare to see multifamily properties, especially elevatored buildings, in great neighborhoods like this change hands in Queens. This package is a testament to the strength of the borough from the point of view of both institutional and private clients. So far, 2013 is shaping up to be a record year for Queens in terms of the velocity and pricing of multifamily assets.”
He elaborates, telling GlobeSt.com, “From 2005 to 2007, there were some major purchases of apartment buildings by institutional investors. Many of them had a time horizon to monetize these investments, and they're selling now because the market is back. Buyers benefit from a tremendous upside because of rent stabilization guidelines.”
This is also a good time to do a deal because of the market's belief that interest rates will either stay in place or go up, but the days of them declining likely are over, Shkury notes.
“Buyers and sellers alike want to make sure that they're transacting right away so they can lock in great interest rates. They're both working very hard to bring deals to fruition because they don't think today's low rates will last forever.”
The purchase expands BRG's presence to include approximately 5,000 units in New York City. Recent BRG transactions include the purchase of 117 units last year in Manhattan for over $30 million and the purchase of a medical office building in Garden City, NY, for over $16 million earlier this year.
Charles Agus, SVP of BRG, tells GlobeSt.com, “The strength of these markets are driven by a lack of supply, the strong demographic base of tenants and close proximity to transportation. Where else can middle market tenants find a one bedroom for less than $1,500 per month and live safely and comfortably within a thirty minute subway ride to Manhattan?'
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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.
