The Real Deal New York

Seven-building East Flatbush rental complex asks $35M

KMG Partners paid $19.5M in 2007
By Mark Maurer | May 15, 2014 08:45AM

Real estate investment firm KMG Partners is asking $35 million for a seven-building apartment complex occupying a full block in East Flatbush, The Real Deal has learned.

The 195,000-square-foot Clarendon Gardens site at 5407-5413 Kings Highway in Brooklyn holds 224 rent-stabilized apartments and 97 parking spots. The deal would also come with 23,790 square feet of as-yet-unused air rights. The units are housed in five three-story buildings and two two-story buildings. The site underwent $4 million in renovations, including a new roof and new gas system, over a three-year period ending in 2011.

Shallini Mehra and Amit Doshi of Flatiron District-based brokerage Besen & Associates are marketing the site, located near Avenue D.

Landlord Eric Granowsky, who left KMG in 2012, went on to launch another real estate firm, ESG Equities. KMGH Clarendon LLC, an affiliate of KMG Partners, bought the buildings in 2007 for $19.5 million, property records. Besen & Associates represented KMG Partners in the 2007 deal.

In 2012, an investor group led by KMG and Peter Moore Associates owed $108.4 million on a building loan mortgage and a project loan mortgage for 627 Greenwich Street, a botched condominium conversion project.  The 124,000-square-foot building sold to LG Acquisitions I, LLC for $75 million just last month, as The Real Deal reported.

  • junkiejr

    Deal has been around for awhile. For some reason no one has actually managed to come to the table. I wonder if it’s the brokers or the sellers. The buildings themselves are crap but, there is what to work with. I would love to buy these units but they need a lot of cash. Banks are barely willing to lend 70% add in closing costs and were talking close to 12m. Rather take the money and buy more brick elsewhere.

    • dealer

      Deal is a sinkhole too many roofs, parking lot’s and boilers