The Real Deal New York

Morgenstern, Valyrian buy pair of Brooklyn rental buildings

Stone Street co-founder and partner opt not to pursue condo conversion

October 16, 2015 03:00PM
By Mark Maurer Twitter_logo_blue copy

1381 Myrtle

1381 Myrtle Avenue in Bushwick

Robert Morgenstern, co-founder of Stone Street Properties and head of Morgenstern Capital, and partner Valyrian Capital picked up a pair of Brooklyn loft buildings for $28 million.

The package consists of a six-story elevator building at 347-355 Lorimer Street in Williamsburg and a five-story elevator property at 1381 Myrtle Avenue in Bushwick. Together, they hold 42 rental units and span nearly 60,000 square feet.

Developer Joshua Guttman, known for constructing the new Brooklyn Expo Center in Greenpoint, owned both buildings for more than two decades, records show.

Alan Shmaruk and Michael Sherman of the Manhattes Group represented Guttman in the deal.

The buildings were marketed as potential conversions into condominiums, but Morgenstern said the new owners will continue to operate them as rentals.

Morgenstern and Valyrian are considering renovating some of the units, to add bedrooms and bathrooms.

“I like the concept of repositioning multifamily buildings,” Morgenstern told The Real Deal. “The condo route could be an option down the road.”

Morgenstern left Stone Street earlier this year to launch his own company in April.

Valyrian Capital, a Connecticut-based investment firm led by twins Brian and Greg Fieber and Ted Kakoyiannis, is eyeing condos elsewhere. The firm plans to build a 14-story condo building on the site of the former Green Point Savings Bank in Prospect Heights.