RedSky, Megalith score big in $37M sale of Park Slope rentals

Investment firm sells Eighth Ave. properties to Israeli family a few years after paying $17M

New York /
Jul.July 07, 2015 02:15 PM

UPDATED, 10:19 a.m., July 7: RedSky Capital and Megalith Capital Management sold a pair of Park Slope rental buildings for $37 million, in one of the neighborhood’s priciest multifamily deals on a per-square-foot basis to date, The Real Deal has learned.

An unidentified Israeli family with several Brooklyn holdings paid $811 per square foot, sources said. RedSky, a Brooklyn-based investment firm led by Ben Bernstein and Ben Stokes, paid a combined $16.6 million for the walk-up buildings at 719-723 Eighth Avenue and 704 Eighth Avenue, in two separate transactions in 2011 and 2012.

RedSky and Megalith proceeded to gut-renovate 32 of the 45 apartments and expanded three of them into duplexes. Of the rentals, 10 units are rent-regulated. There are also two office units. The properties span nearly 46,000 square feet and have a 4.1 percent cap rate.

RedSky, which is also an active investor in Williamsburg retail, put the buildings on the market for $41 million in January. Ofer Cohen and Adam Hess of TerraCRG represented RedSky in the deal.

“You don’t normally find multifamily sales of this scale in this area,” Hess said.

Elsewhere in the neighborhood last year, a four-story rental building at 857 Union Street sold for $842 per square foot, or $8.6 million, and a five-story rental building at 401 12th Street sold for $800 per square foot, or $5.8 million, records show. Hess also served as a broker on those deals.

The buyer is planning a long-term hold for the buildings, sources said.

In February, Douglas Eisenberg’s A&E Real Estate acquired a three-borough 32-building multifamily portfolio from the Dermot Co. for north of $360 million – six of which were in Park Slope.


Related Articles

arrow_forward_ios
Brooklyn luxury contracts led by $10.7M condo, $6.4M Park Slope brownstone
Brooklyn luxury contracts led by $10.7M condo, $6.4M Park Slope brownstone
Brooklyn luxury contracts led by $10.7M condo, $6.4M Park Slope brownstone
Photo Illustration of New York Mayor Bill de Blasio (Getty)
New York Mayor Bill de Blasio starts renovation work on Park Slope home
New York Mayor Bill de Blasio starts renovation work on Park Slope home
Brooklyn luxury contracts heat up in first week of October
Brooklyn luxury contracts heat up in first week of October
Brooklyn luxury contracts heat up in first week of October
18 India Street and Greenpoint Landlease Global CEO Tony Lombardo (Google Maps, Lendlease)
Lendlease files plans for 14-story mixed-use building in Greenpoint
Lendlease files plans for 14-story mixed-use building in Greenpoint
The Grand Prospect Hall at 263 Prospect Avenue with former Mayor Robert Wagner (Getty, Jim.henderson/Wikimedia, NYPAP/Illustration by Kevin Rebong for The Real Deal)
How (not) to save a beloved building
How (not) to save a beloved building
Grand Prospect Hall at 263 Prospect Avenue in Brooklyn (Google Maps, iStock)
Grand Prospect Hall to be demolished
Grand Prospect Hall to be demolished
Slate Group's David Schwartz and 541-555 Fourth Avenue in Park Slope (Google Maps, Slate)
Slate buys out AEW, Adam America’s stake in Park Slope homeless shelter building
Slate buys out AEW, Adam America’s stake in Park Slope homeless shelter building
The Grand Prospect Hall with former owners Michael and Alice Halkias. (Facebook via The Grand Prospect Hall)
Grand Prospect Hall sold in Park Slope assemblage
Grand Prospect Hall sold in Park Slope assemblage
arrow_forward_ios

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

Loading...