The Real Deal New York

Brooklyn multifamily building bought for $10M sells for $26M

Seller Lincoln Prospect Associates purchased the Prospect Lefferts Gardens property in 2010

December 17, 2014 01:30PM
By Claire Moses

115 Ocean Avenue in Prospect Lefferts Park, Brooklyn

115 Ocean Avenue in Prospect Lefferts Gardens, Brooklyn and Erik Yankelovich

An 87,000-square-foot multifamily building in the heart of Prospect Lefferts Garden traded for $25.7 million, The Real Deal has learned.

Owner Lincoln Prospect Associates sold the building in an off-market deal to a local investor. Lincoln bought the 89-unit building in 2010 for $9.8 million, property records show.

GFI Realty’s Erik Yankelovich was the sole broker on the off-market transaction.

The unnamed buyer is a local family “that has been investing in Brooklyn for multiple years,” the broker said.

The apartments in the building are all rent stabilized. In February, the city reportedly named the building the borough’s worst building, due to violations that included peeling lead paint, mold and roaches. According to the most recent records on the Department of Buildings’ website, there are currently 12 open violations on the building, a dramatic decrease from the hundreds of open violations that were reported earlier in the year.

The $25.7 million sale price works out to $290,000 per apartment or $295 per square foot.

The price for the building is one of the highest in the area, said Yankelovich. With a lot of money coming into the area and a lack of supply in multifamily buildings, he said, more properties in the neighborhood will likely be sold for similarly high prices.

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