“Our German investor sees a lot of upside in 218 South Third Street and its neighborhood in South Williamsburg, which is following in the trends of North Williamsburg, its more mature neighbor,” Zlotnick says. “The German buyers appreciated the opportunity to further renovate this building and increase its value.”

He adds that with the imminent temporary shutdown of the L train, he expects more investment activity and growth in South Williamsburg.

Earlier this year Rogosnitzky and Zlotnick, a former top producing vice president at Meridian Capital Group, brokered a retail condominium deal purchase in New York City for $13.5 million to a foreign buyer from Russia.

NEW YORK CITY—A multifamily property in South Williamsburg, Brooklyn has nearly doubled in value in just two years. A German real estate family has acquired 218 South Third St. for $23 million.

Brokerage firm the Britannia Group reports the six-story, 41-unit apartment building was acquired by BCB Property Management in 2014 for $12.75 million.

The German real estate family's purchase multiple is 21.5 times the rent with a capitalization rate of 3.3%, according to Britannia Group's co-founders and managing partners Jacob Rogosnitzky and David Zlotnick, who represented the buyer in the deal. The deal marked the German real estate family's entrance into the New York City market. Terra CRG's Adam Hess along with Eddie Setton and Nicole Rabinowitsch represented the BCB Property Management in the transaction.

Both Britannia Group brokers say the deal is a sign of growing foreign interest in real estate in New York's outer boroughs and emerging neighborhoods, such as South Williamsburg.

“Our German investor sees a lot of upside in 218 South Third Street and its neighborhood in South Williamsburg, which is following in the trends of North Williamsburg, its more mature neighbor,” Zlotnick says. “The German buyers appreciated the opportunity to further renovate this building and increase its value.”

He adds that with the imminent temporary shutdown of the L train, he expects more investment activity and growth in South Williamsburg.

Earlier this year Rogosnitzky and Zlotnick, a former top producing vice president at Meridian Capital Group, brokered a retail condominium deal purchase in New York City for $13.5 million to a foreign buyer from Russia.