NEW YORK CITY—In the trade of the legendary Kings Portfolio—reported earlier this week—the buyers were principals Peter Rebenwurzel of Coney Realty Group and David Malek of Malek Management. The 15-property rental portfolio was sold by Urban American.
Eastern Consolidated chairman and CEO Peter Hauspurg, principal and executive managing director David Schechtman, principal and senior director Peter Carillo, and director Marion Jones exclusively represented the seller in the transaction. Eastern Consolidated senior managing director and principal Lipa Lieberman represented the buyer. Senior director of financial services Gary Meese served as the analyst in the transaction.
“It is rare that a portfolio of this quality and size ever comes to market in New York City and especially rare during a time when abundant debt and equity financing exists,” says Schechtman. “This is an incredibly large, stable portfolio with high occupancy and strong in-place income with units across a broad cross-section of the most ascendant New York City borough.”
“There is staggering demand for these units,” Lieberman adds. “While the portfolio as a whole exhibits tremendously strong performance, rents remain materially below market by roughly 25% to 30% or greater in select cases. Coney Realty Group and Malek Management are well positioned to populate all of the units at full legal rents, maximizing on their investment.”
Notes Jones, “The offering experienced an exceptionally strong reception from the investment community, demonstrating the appeal in today's market for housing across all Brooklyn neighborhoods.”
The 1.5 million-square-foot portfolio includes a total of 1,434 apartments—99% of which are occupied and 96% of the units are rent stabilized. Urban American invested more than $13 million in major capital improvements across the portfolio since August 2007.
Seven of the buildings are in the East Flatbush/Remsen Village neighborhoods of Brooklyn, seven are in the Midwood/Flatlands area while one garden apartment complex is in the Oakwood neighborhood in Staten Island.
The two largest buildings in the portfolio are a 178-unit property at 2425 Nostrand Ave. in Midwood and the Staten Island complex at 2838-2868 Hylan Blvd, which features 176 units.
The attorney for the purchaser was Jeffrey Mehl. The attorneys for the seller were Michael Kleinerman, Hali Katz, and Rishard Cooper of Hogan Lovells.
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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.
