The Real Deal New York

Time Equities to buy Venetian rentals in Midwood for $27M

Sitt Asset Management developed project as condos prior to downturn

October 22, 2014 03:40PM
By Mark Maurer

venetian

From left: Francis Greenburger, 421-447 Avenue P in Brooklyn and Stephen Shapiro

Francis Greenburger’s real estate development firm Time Equities entered contract on Tuesday to acquire the six-story Venetian rental building in Brooklyn’s Midwood neighborhood for $27 million, The Real Deal has learned.

The 66,500-square-foot property at 421-447 Avenue P, near East 2nd Street, holds 33 apartments. The seller-to-be, Sitt Asset Management, developed the Venetian as a condominium site prior to the onset of the market downturn.

Sitt Asset bought the development site in 2002 and 2003 for $9 million, and received a $54 million construction loan from Citibank in 2007 to launch the ground-up project, as TRD reported. Shortly after the building was complete in 2010, the owner sought to buy back the loan from Citi at the discounted price of $25 million. The Venetian opened its doors in 2012.

The deal is slated to close in December, according to sources close to negotiations.

Stephen Shapiro and Richard Baxter of JLL’s New York Capital Markets Group are representing Sitt Asset Management. Shapiro and Baxter declined to comment. Daniel Rahmani of Venture Capital Properties and Harry Kantor and Chris Pulling of Time Equities represented the would-be buyer. 

The European Renaissance-style building’s residential component is 97 percent leased and the ground-floor retail space is 88 percent occupied with tenants with long-term leases.
The apartments range from one- to four-bedrooms and average 1,782 square feet. There are four penthouses – each with wraparound balconies – that are currently rented for $6,000 to $7,000 per month. Average rent at the property is $4,900 per month.

Amenities include a fitness center, lounge, children’s playroom and underground parking for tenants.

In July, Time Equities launched sales at its 64-story luxury residential tower at 50 West Street in the Financial District, as previously reported.

  • Broker

    What’s the cap?

    • Basil Vasiliu

      6.5%

  • costs

    So the place costs $63 mil to build and after buying back the loan it cost $32 mil, and it sells for $27 mil… WOW

  • Venetian Tenant

    I’m curious if Time Equities will be any better than Sitt Management at dealing with the infernal noise from the Concrete Gym, which is one of the Venetian’s commercial tenants. The noise starts as early as 6AM and goes as late as 9PM, the whole thing has been going on for months and has many of the affected residential tenants of the verge of revolting.

MENU