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.
“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.