The $13.75 million sale of 32-unit rental building in East Williamsburg closed today, The Real Deal has learned.
Springhouse Partners purchased the four-story building at 90 Meserole Street, between Leonard Street and Manhattan Avenue, from an LLC named 9096 Meserole Street. The off-market transaction, brokered by Steven Vegh of Multi Investment Group, worked out to $430,000 per unit and about $350 per square foot.
Back in 2009, Corcoran was hired to market condominiums inside the Robert Scarano-designed “Relish Brooklyn” building, Streeteasy.com data shows. However, the developer, which Department of Buildings records reveal to be Nik Lavrinoff, faced financial difficulties brought on by the struggling real estate market. In 2010, Brooklyn Federal Savings Bank filed a lawsuit over an $8.43 million construction loan. But Lavrinoff appears to have cleared that hurdle as the building was finally completed in 2011, and re-entered the market as rentals last summer.
The loft-style units are now 100 percent leased, a source said, and Streeteasy.com shows that the four units listed on its site were asking an average of $33 per square-foot. A two-bedroom, one-bathroom, 990-square-foot apartment, for example, was listed at $2,645 per month through Nevo Realty Corp.
The price paid per unit is similar to what The Real Deal reported Madison Realty Capital paid for a 47-unit rental building at 385 Union Avenue last month. Interest in Brooklyn rental properties has reached a crescendo of late and pushed prices ever higher, as investors move to capitalize on the boroughs rapidly rising rents. TerraCRG said rents in the borough are expected to increase another 5 to 10 percent this year.
“Both the buyer and seller moved fast to secure this off-market transaction,” Vegh said. “Adam [Verner] bought a solid cash flow asset with room for the rents and the market to continue to grow.”
Springhouse, which was founded by Adam Verner, is a real estate investment firm that has concentrated most of its activity in Upper Manhattan thus far, according to published reports. Verner and Lavrinoff did not respond to requests for comment.