Updated 29 days ago on . Most recent reply
Brooklyn New York Multifamily Investment
Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $13,100,000
323 East 19th Street is a 38-unit rental building located in Brooklyn’s Ditmas Park neighborhood. The property offers a modern design, efficiently designed one and two-bedroom layouts, a full suite of amenities including, on-site parking, a laundry room, residents’ lounge, co-working space, roof deck, bike storage, and a gym. The building is also 100% rent stabilized under an existing 421A with nearly all the real estate taxes being exempt. Post 421A the building becomes 100% free market.
What made you interested in investing in this type of deal?
The property is just off Cortelyou Road and Flatbush Avenue, two major commercial corridors in the area. The Q subway line is 3 blocks away takes around 20 minutes to reach Manhattan. 323 East 19th Street is one of the higher quality multifamily properties in Ditmas Park, a neighborhood I believe has great potential. It is well-built, well-located, and reasonably priced. It reflects our belief that there are still smart, selective opportunities in New York for experienced long-term investors.
How did you find this deal and how did you negotiate it?
This was sourced through strong local broker connections and a workout between the developer and lender.
How did you finance this deal?
Received a 70% LTV loan from M&T bank.
How did you add value to the deal?
The deal was purchased at a 7.5% cap well above market average. In addition the building suffered from poor management, leaving a spread between current and max legal as units turnover they will be pushed to max legal rents.
