Urban American puts big Brooklyn-heavy portfolio on the block

14 properties in Brooklyn and one in Staten Island are expected to fetch more than $200M

New York /
Sep.September 12, 2014 06:10 PM

Urban American Management, one of the city’s leading private equity-backed real estate investment firms during the mid-2000s boom, is listing for sale a mega Brooklyn-focused apartment portfolio likely to trade for more than $200 million.

The 14 buildings in Brooklyn and one garden apartment complex in Staten Island have 1,434 apartments total, with an average monthly rent of just over $1,200 for each unit, documents reviewed by The Real Deal show.

The package of buildings, which was once owned by the dynastic Lefrak family, has an estimated net operating income of just over $8 million, on gross income of about $21 million, the papers reveal.

Urban American tapped Eastern Consolidated’s CEO Peter Hauspurg, Executive Managing Director David Schechtman and Director Marion Jones, to market the portfolio.

A spokesperson for Urban American confirmed the company was marketing a Brooklyn portfolio, “but [has] not decided what action to take.” Eastern Consolidated’s Jones said the brokerage would only confirm it had the exclusive listing.

Urban American and partners bought the portfolio from the LeFrak Organization in 2007 for $251 million, although at the time it was a larger collection of buildings with a total of 2,105 apartment units including several large buildings  in Queens.

In that sale, a team at commercial firm CBRE — including Jones — represented the LeFrak Organization.

The largest properties in the current listing are the 178-unit 2425 Nostrand Avenue in Midwood and the 176-unit garden apartment complex at 2862 Hylan Boulevard in Oakwood, Staten Island.

From 2005 through 2008, the firm partnered with investors such as the City Investment Fund, state pension funds and Fannie Mae, among others, as it amassed a large portfolio managed out of a former yarn factory in West New York, New Jersey.

It’s unclear exactly how many units it now controls, but an analysis of Real Capital Analytics data shows the firm sold about 3,600 units in the city since 2010, and purchased about 1,200 during that time. Insiders say it still maintains significant holdings in the city.

Those sales do not include the firm’s biggest, the looming trade of the so-called Putnam portfolio. Brookfield Property Partners said last month in a public filing it will buy the 3,962-unit portfolio in Upper Manhattan. Insiders said it will likely trade for $1 billion.

The Urban American spokesperson said the company was not selling its interest in the Putnam portfolio.

“[Urban is] going to be in a [joint venture] with Brookfield to continue to own and operate the 4,000 units in the Putnam portfolio, in the same manner that they have to date,” the spokesperson said in an email.


Related Articles

arrow_forward_ios
Brookfield Real Estate CEO Brian Kingston and Brookfield Asset Management Bruce Flatt (Brookfield)
Brookfield taking pandemic-hit real estate arm private
Brookfield taking pandemic-hit real estate arm private
Crystal Mall in Waterford, CT; Prizm Outlets in Primm, Nevada; and Louis Joliet Mall in Louis Joliet, Illinois (Facebook, Google Maps, iStock/Illustration by Alexis Manrodt for The Real Deal)
Rock-bottom prices: 11 malls whose valuations have tanked
Rock-bottom prices: 11 malls whose valuations have tanked
Brookfield’s Bankside rendering and CEO Brian Kingston (Brookfield, ArX Solutions)
Brookfield’s $190M loan for Bankside tops February outer-borough list
Brookfield’s $190M loan for Bankside tops February outer-borough list
Many of the lower-tier malls that will be sold will likely be redeveloped into something else. (Getty)
U.S. mall values fall 60% after appraisals
U.S. mall values fall 60% after appraisals
Brian Kingston of Brookfield Property Partners (left) and Bruce Flatt of Brookfield Asset Management
Brookfield’s internal affairs
Brookfield’s internal affairs
Brookfield Property Partners' Brian Kingston and Brookfield Place (Brookfield;Getty/Illustration by Kevin Rebong for The Real Deal)
Brookfield Property Partners reports $2B in losses in 2020
Brookfield Property Partners reports $2B in losses in 2020
Four of the malls in question: Crossroads Center in St. Cloud, Minnesota, Mall St. Matthews in Louisville, Kentucky, North Point Mall in Alpharetta, Georgia and Park Place Mall in Tucson, Arizona. (Crossroads Center, Mall St. Matthews, North Point, Park Place)
Return to lender: 10 malls Brookfield may give up, and why
Return to lender: 10 malls Brookfield may give up, and why
One New York Plaza and Brookfield Property Partners CEO Brian Kingston (Photos via Brookfield)
Here’s what tenants are paying at Brookfield and CIC’s One New York Plaza
Here’s what tenants are paying at Brookfield and CIC’s One New York Plaza
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...