The Real Deal New York

BK investor pays $37M for Sheepshead Bay rental

135-unit property on Avenue X spans 125K sf
By Kathryn Brenzel | February 03, 2017 02:05PM

1245 Avenue X in Sheepshead Bay

Brooklyn-based investor Seymour Nierenberg just shelled out $37 million for a rental building in Sheepshead Bay.

Nierenberg purchased a seven-story apartment building at 1245 Avenue X, between 13th Street and Sheepshead Bay Road, according to documents filed with the city on Thursday. The 135-unit building spans 124,636 square feet and was built in 1963. The South Brooklyn property last sold in 1972 to Susan Wasserman for an undisclosed price.

For the latest sale, Dime Community Bank provided Nierenberg with a $20.2 million acquisition loan, records show. The building acquisition came out to roughly $300 per square foot.

Over the past two decades or so, Nierenberg has invested in a bevy of Brooklyn multifamily properties under various LLCs, records show. The deals look to be a family affair, as a David Nierenberg appears on the deeds for various properties involving those LLCs, including a multifamily building at 1364 51st Street, which was purchased for $12.7 million in 2013.

A call to Seymour Nierenberg was not immediately returned. It is unclear if brokers were involved.

In recent years, Sheepshead Bay has lured developers looking to target middle-market condominium buyers. Rybak Development, for example, is offering 58 condo units priced between $535,000 and $1.7 million at 1821 Emmons Avenue. The development has a total projected sellout of $77.2 million. Muss Development is seeking a $63.2 million sellout for its condo units at 1501 Voorhies Avenue.