A&E Buys LeFrak's South Brooklyn Portfolio for $249M

A&E Real Estate announced this week that it has finalized the acquisition of 14 multifamily buildings in Brooklyn’s Gravesend and Sheepshead Bay neighborhoods from The LeFrak Organization of $248.7M.

The apartment buildings, which encompass 1,212 units, make up LeFrak’s South Brooklyn portfolio. The acquisition was financed in part through a $170M fixed-rate loan from Signature Bank, which was arranged by Jonathan Estreich and Jason Boxer of Estreich & Co.

The acquisition of a multifamily cluster owned by a giant of NYC real estate is just the latest in a series of six large NYC multifamily acquisitions by A&E. Over the past 12 months, NYC-based A&E has acquired a total of 3,284 units in 43 apartment buildings in Brooklyn, Manhattan and Queens.

In 2022, A&E has acquired 1080 Amsterdam in Morningside Heights from SL Green; 140 and 160 Riverside Boulevard on the Upper West Side from Equity Residential; Cunningham Heights, a 22-building portfolio in Queens Village; and 92-40 Queens Boulevard in Rego Park.

In his announcement of the LeFrak South Brooklyn portfolio acquisition, Douglas Eisenberg, executive chair of A&E, underlined the company’s commitment to its home town.

“As long-term believers in the enduring strength of New York City and its residential neighborhoods, we have been undeterred by the economic, regulatory and pandemic-related uncertainties that have periodically sent other multifamily investors to the sidelines,” Eisenberg said.

“Our unwavering conviction has set us up to grow and diversify our portfolio through an array of acquisitions—from luxury buildings on the Upper West Side and Sutton Place to working-class apartment communities in Sheepshead Bay and Rego Park,” the A&E chair said.

All 14 of the buildings in the South Brooklyn portfolio were built by the LeFrak family between 1957 and 1961, the zenith of apartment project building in NYC during the reign of master builder Robert Moses.

“This [is a] rare opportunity to acquire such a high-quality portfolio in two bedrock Brooklyn communities. We’re committed to maintaining the high standards the Lefraks set for all of these residential buildings,” Eisenberg said.

Since 2015, LeFrak has invested more than $18M in capital improvements throughout the portfolio. The largest buildings in the portfolio include 2750 Homecrest Avenue and 27775 East 12^th Street, each consisting of 189 units, and 2375 East 3^rd Street, encompassing 134 units.