NEW YORK CITY—Prospective CRE investors enticed by the Brooklyn brand likely will want to bid on a five-property portfolio that's just come onto the market in the Northern portion of the borough.
The Duke Properties Brooklyn portfolio—consisting of four multifamily and one mixed-use building across three known neighborhoods of Brooklyn—is being marketed by Cushman & Wakefield with an asking price of $18 million, GlobeSt.com has learned EXCLUSIVELY.
The five brick and limestone walkup buildings are located at 29 Brooklyn Ave., 137 MacDonough St. and 235 Malcolm X Blvd. in Bedford-Stuyvesant, 1509 Pacific Ave. in Crown Heights and 300 Palmetto St. in Bushwick. In total, the buildings provide 49 apartments and two stores, 27 of which will be delivered vacant or renovated, Michael Amirkhanian, who is exclusively marketing the portfolio, tells GlobeSt.com.
“By assembling these properties, Duke has created value quickly for its investors but it has left some meat on the bone for a purchaser,” he says. “The average rent of the regulated units is just over $11 per square foot—a third of the market rate—and 47% of the portfolio's apartments either are regulated or haven't been vacated yet so there's a lot of upside.”
In addition, Amirkhanian tells GlobeSt.com, “A total of 37% of the units are vacant, so they're ready for someone to add value.”
As Brooklyn's star continues to rise, Nothern Brooklyn in particular is having a real estate moment, Amirkhanian notes.
“Northern Brooklyn represented 30% of the borough's transactions last year; that's not an accident. People know about the area now, you can get to Wall Street or Union Square within 25 minutes and there's convenient access to Downtown Brooklyn and Williamsburg.
Bids likely will come in from some surprising corners, Amirkhanian continues. “We've seen a lot of 1031 money looking to leave Manhattan for Brooklyn and, over the last six months, international money has been looking to come to Brooklyn.
“The areas is 20 to 25 minutes from one of the world's largest markets,” he adds, “so it's a pretty compelling case for an investor because it has scale and solid upside.”
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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.
