The Real Deal New York

Related makes another Brooklyn play with $32M deal

Multifamily acquisition the firm’s latest outer-borough move

July 22, 2015 01:40PM
By Rey Mashayekhi

Jeff Blau and 1865 Burnett

Jeff Blau and 1865 Burnett Street in Marine Park

Related Companies continues to flex its muscles in the outer boroughs — it’s purchased a trio of multifamily buildings in Brooklyn’s Marine Park neighborhood for $32.2 million, according to property records filed with the city Wednesday.

The complex – at 3001 Avenue R, 3004 Avenue R and 1865 Burnett Street – houses two-story buildings containing 144 residential units across almost 107,000 square feet of space.

Related closed on the deal July 1 with distressed debt firm Torchlight Loan Services, which acquired the buildings last year from Hoti Realty Management, according to property records.

Torchlight was previously involved in a legal dispute with Hoti Realty after Hoti president Victor Dedvukaj took out a $31 million loan on the property in 2007. Torchlight later sued Hoti over missed payments in 2009. The complex lost half its tenants during the foreclosure dispute, and served as a refuge for Hurricane Sandy victims in 2012.

Related’s acquisition is its latest play in the outer boroughs, with the firm acquiring a portfolio of 10 residential buildings across Brooklyn and Queens from Silvershore Properties for $39.4 million earlier this month, The Real Deal reported.

The firm, known primarily for its large projects, is now venturing into a market typically occupied by small investment firms and mom-and-pop landlords. Related bought the Silvershore buildings in partnership with New York City pension funds, and said it will preserve them as “workforce housing.”

Neither Related nor Torchlight could be reached for comment.

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