Urban American buys Williamsburg rentals for $48M

Three walk-ups with 100 units in total last sold for $24M
By Mark Maurer | January 27, 2015 11:45AM

Urban American Management picked up a three-building Williamsburg rental portfolio from BCB Property Management for $48.1 million, more than twice the previous purchase price, The Real Deal has learned.

The walk-up properties include a six-story, 48,000-square-foot property at 442 Lorimer Street; a five-story, 24,000-square-foot structure at 164-166 Havemeyer Street; and a six-story, 20,000-square-foot building at 179-183 Havemeyer Street. Together, they hold roughly 100 apartments and 11 ground-floor retail spaces.

Marcus & Millichap’s Matthew Fotis represented both sides in the deal, which closed Friday, he said.

BCB, led by Debrah Lee Charatan and her son Bennat Charatan Berger, bought up the properties over the past three years. The Midtown East-based firm paid $13.1 million for the two Havemeyer buildings in 2012 – and $10.5 million for the Lorimer Street property the following year, records show.

The majority of the units subsequently underwent a renovation, Berger said. Rents at 442 Lorimer start at $1,858 per month and go up to $4,000 per month, according to StreetEasy.

“Due to the rapid appreciation of the South Williamsburg market and the demand for multifamily assets in Brooklyn, we decided it was best for us to realize our gains and let Urban take the properties to the next level,” Berger told TRD. “We still believe strongly in the long-term potential of South Williamsburg and will continue to acquire assets in the submarket.”

A representative for Urban American declined to comment.

Urban American and BCB were both involved in big portfolio deals late last year, separately. BCB acquired a six-building Upper West Side portfolio for $80.8 million in November, as TRD reported.

Urban American sold the nearly 4,000-unit Putnam portfolio to Brookfield Property Partners for $1 billion – while retaining a stake – and is in contract to sell the 1,430-unit Kings and Queens portfolio to Brooklyn investor Peter Rebenwurzel for $236 million.