Related buys four-building BK portfolio for $30M

BCB added fifth floor to each of the Prospect Heights walk-ups

Dec.December 15, 2016 07:00 AM

The Related Companies, in partnership with New York City pension funds, picked up a four-building Prospect Heights portfolio from Debrah Lee Charatan’s BCB Property Management for $30 million, or about $570 per square foot, sources told The Real Deal.

The contiguous five-story walk-ups at 315-329 Lincoln Place, about a block from Brooklyn Museum, collectively span 52,543 square feet. The buildings have 48 apartments — a mix of rent-stabilized and free-market — and a capitalization rate of 3.79 percent.

Related Fund Management and the pension funds closed Wednesday on the all-cash purchase, sources said. The partnership seeks to preserve workforce housing in the city.

BCB bought the package from Bay Ridge-based investor Alessandro Pirozzi for $12.8 million in January 2014. This summer, BCB finished the renovation of an additional fifth floor across all four buildings, resulting in two more apartments apiece.

Representatives for Related TRData LogoTINY and BCB declined to comment. Related didn’t use a broker. Cushman & Wakefield’s Stephen Palmese represented BCB in the deal.

BCB has been selling off most of its holdings through on-the-market channels. The firm recently hired Cushman to market six Manhattan buildings for $125 million and TerraCRG to market three Williamsburg buildings for $50 million.

Last year, Novel Property Ventures, a firm jointly headed by Debrah Lee Charatan’s son Bennat Charatan Berger and Andrew Miller, paid $23.5 million for a 55-unit building nearby 362-384 Lincoln Place.

Related has been an aggressive multifamily buyer in the outer boroughs. The development giant acquired a 444-unit package of Section 8 housing in Astoria earlier this year for $115 million, and did the Bronx’s largest multifamily deal of last year – a 737-unit portfolio for $112.5 million — also in partnership with city pension funds.

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