Related makes another Brooklyn play with $32M deal

Multifamily acquisition the firm’s latest outer-borough move

Jul.July 22, 2015 01:40 PM

Related Companies continues to flex its muscles in the outer boroughs — it’s purchased a trio of multifamily buildings in Brooklyn’s Marine Park neighborhood for $32.2 million, according to property records filed with the city Wednesday.

The complex – at 3001 Avenue R, 3004 Avenue R and 1865 Burnett Street – houses two-story buildings containing 144 residential units across almost 107,000 square feet of space.

Related closed on the deal July 1 with distressed debt firm Torchlight Loan Services, which acquired the buildings last year from Hoti Realty Management, according to property records.

Torchlight was previously involved in a legal dispute with Hoti Realty after Hoti president Victor Dedvukaj took out a $31 million loan on the property in 2007. Torchlight later sued Hoti over missed payments in 2009. The complex lost half its tenants during the foreclosure dispute, and served as a refuge for Hurricane Sandy victims in 2012.

Related’s acquisition is its latest play in the outer boroughs, with the firm acquiring a portfolio of 10 residential buildings across Brooklyn and Queens from Silvershore Properties for $39.4 million earlier this month, The Real Deal reported.

The firm, known primarily for its large projects, is now venturing into a market typically occupied by small investment firms and mom-and-pop landlords. Related bought the Silvershore buildings in partnership with New York City pension funds, and said it will preserve them as “workforce housing.”

Neither Related nor Torchlight could be reached for comment.

Related Articles

Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)

Related is the latest developer to target the Rockaways

RCP CEO Richard O’Toole and Related CFO David Zussman (Credit: O’Toole via Westchester Magazine and Zussman via Related)

Related tries to calm Israeli investors after market panic

Related CEO Stephen Ross (Credit: Ross by Arturo Holmes/Getty Images; Wikipedia Commons)

Related’s Israeli bonds worry auditors as crisis worsens

Steve Ross, Eliot Spitzer and a rendering of 451 10th Avenue (Credit: Getty Images) 

Spitzer, Related land $276M in financing for Hudson Yards senior housing project

Jeff Blau (Credit: Getty Images)

Related’s CEO talks Hudson Yards and “complicated” projects

Related Chairman Stephen Ross (Credit: Getty Images, Wikipedia)

Related drops 700-foot-long “wall” from Hudson Yards plan

Shaun Osher, CORE CEO (Credit: Getty Images and iStock)

CORE becomes latest NY resi brokerage to expand into South Florida

Related Companies chairman Stephen Ross and Hudson Yards (Credit: Getty Images)

Next phase of Hudson Yards could include 700-foot-long wall