A&E to buy five-building Brooklyn portfolio for $89M

265-unit package last sold in separate deals in the mid-2000s for $38M

New York /
Dec.December 01, 2016 02:00 PM

UPDATED, 10:36 a.m., Dec. 22: A&E Real Estate Holdings is in contract to pick up a five-building Brooklyn multifamily portfolio for $89 million, or $366 per square foot, sources told The Real Deal.

The buildings, which collectively span about 243,000 square feet, are scattered around Prospect Park – in neighborhoods such as Kensington, Prospect Lefferts Gardens and Prospect Park South. It contains 265 apartments, most of which are rent-stabilized.

A&E entered contract on the package last month and is expected to close on the purchase in either December or January, sources said. The price comes out to nearly $350,000 per unit. The going-in capitalization rate is about 5 percent, sources said.

An affiliate of John Streicker’s Sentinel Real Estate Corporation TRData LogoTINY acquired each of the buildings separately from 2006 to 2008 for a total of $37.7 million, property records show.

The addresses are 230 Ocean Parkway, 483 Ocean Parkway, 80 Woodruff Avenue, 65 Ocean Avenue and 100 Lefferts Avenue. Rents at 230 Ocean Parkway, for example, range from $1,550 to $2,500 per month, according to StreetEasy.

Rosewood Realty Group’s Aaron Jungreis, who is brokering the deal, declined to comment, as did A&E. Sentinel could not be reached.

M&T Bank provided a $60 million acquisition loan, sources said.

The deal continues A&E’s multifamily acquisition spree, particularly in the outer boroughs. The Midtown-based firm owns more than 100 buildings in New York City and has amassed more than 8,800 rental units since forming in 2011, according to a TRD analysis. The firm’s heads are Douglas Eisenberg and John Arrillaga Jr., sons of Urban American Management CEO Philip Eisenberg and billionaire Silicon Valley developer John Arrillaga Sr., respectively.

Sentinel is also in contract to sell five Washington Heights rental buildings for $101.5 million.

THE REAL DEAL is making its proprietary research available to the public. TRData LogoTINY or call us at (646) 503-3561 to purchase these packages.

Package title Date Transactions Price
Manhattan Investment Sales Nov 1st 2015 to Oct 1st 2016 350+ $100
Manhattan Investment Sales Nov 1st 2011 to Oct 1st 2015 1800+ $500

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