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Angelo Gordon looks to sell DoBro leasehold for $100M
Lease controlling 250K sf office building set to gain value with rent reset
Angelo, Gordon & Co. is looking to sell the ground lease under a 250,000-square-foot office building in Downtown Brooklyn for $100 million.
The Midtown-based real estate investment firm[TRData] hired brokers at JLL to market the leasehold for 30 Flatbush Avenue, which is net leased to Con Edison, Crain’s reported.
The city owns the land under the building, and as per the terms of the lease, it has the right to take control of the property when the lease expires in 54 years.
Prospective buyers can count on a 5 percent return and future upside when Con Edison’s rent resets in about 10 years, the publication reported.
“The investment opportunity presents a great yield with limited risk,” Ledesma said. “There’s also upside because of the inherent rent growth in a market that will continue to mature over the term of the net lease.”
Demand for office space in Downtown Brooklyn is expected to grow as thousands of residential units come online. [Crain’s] – Rich Bockmann