Sugar Hill buys vacant Williamsburg rental building for $37M

Zegen's Madison Realty Capital rescued property from foreclosure in 2012

Jun.June 24, 2015 03:45 PM

Sugar Hill Capital Partners bought a 47-unit apartment building at 385 Union Avenue in Williamsburg from Madison Realty Capital for $37.4 million, The Real Deal has learned.

Madison Realty Capital picked up the six-story elevator property in 2012 for $21.5 million, when it was in foreclosure, Madison Realty co-founder Josh Zegen told TRD.

Three years ago, the Midtown-based firm purchased the 53,000-square-foot building from City National Bank. Zegen added that he was also able to buy the property’s deed from former developers Anshel Friedman and Pincus Freund.

Friedman and Freund initially planned to create condominium units.

Sugar Hill, which is led by David Schwartz, will likely open the now-vacant property on the corner of Union Avenue and Ainslie Street as a rental development.

Rosewood Realty’s Aaron Jungreis and Michael Guttman were the sole brokers on the deal.

A 25-year 421a tax abatement is in place on the property.

“It’s a hot part of the Williamsburg submarket,” Zegen said. The building is located close to the second stop on the L-train. New developments are sprouting up and the neighborhood’s firs Starbucks recently opened.

The new owner might create a retail space on the first floor, Jungreis added. The building also includes a gym, a roof deck with views over Manhattan and floor-to-ceiling windows in the apartments.

Sugar Hill sold two Harlem rentals in May for $36 million, and is developing a condo project in Park Slope.

Related Articles

Madison makes $157M loan on Santa Monica rental projects

Madison makes $157M loan on Santa Monica rental projects

From left: Jonathan Brody, Aaron Jungreis, and Alan Soclof

Stung by NY rent laws, Rosewood Realty is going nationwide

From left: Raphael Toledano and Madison Realty Capital managing principals Adam Tantleff, Josh Zegen and Brian Shatz (Illustration by Kevin Rebong for The Real Deal)

Raphael Toledano’s “ghostly” East Village portfolio

Union Crossing at 825 East 141st Street with The Bluestone Group's Eli Tabak and Madison Realty Capital's Josh Zegen (Credit: Union Crossing Bronx)

South Bronx office building lands $85M refi

Brian Shatz and Josh Zegen of Madison Realty Capital (Credit: Angela Pham @BFA)

Madison Realty Capital throws merry bash

14-16 Fifth Avenue along Madison Square Park and Madison Realty Capital's Josh Zegen (Credit: Google Maps)

Madison Realty Capital planning condo by Washington Square Park

Rendering of the Staybridge Suites at 38-59 11th Street

Long Island City hotel project moves forward with construction loan

From left: 249 Broome Street, 135-145 West Kingsbridge Road, and 1975 Madison Avenue with Azimuth Development Group president Guido Subotovsky (Credit: Google Maps)

Here’s what the $10M-$30M NYC investment sales market looked like last week