The Real Deal New York

Silvershore looks to sell half of its NYC real estate holdings

Multifamily firm asking $200M-plus for a 44-building Brooklyn package
By Mark Maurer | Twitter_logo_blue copy March 27, 2017 02:45PM

From left: Bob Knakal, Jason Silverstein, David Shorenstein and 5416-5422 Fourth Avenue in Sunset Park (Credit: Google Maps)

UPDATED, March 27, 4:40 p.m.: Silvershore Properties is looking to part ways with roughly half of its New York City holdings.

The NoMad-based landlord is asking north of $200 million for 44 Brooklyn rental buildings, one of the more sizable multifamily portfolios to hit the market in recent memory, sources told The Real Deal.

Silvershore TRData LogoTINY, led by David Shorenstein and Jason Silverstein, owns nearly 100 apartment buildings across the city, worth about $400 million in total, according to Silverstein. The firm’s holdings are largely low-rise, rent-stabilized properties in Brooklyn, though it also owns properties in Manhattan and Queens.

The 44 Brooklyn buildings for sale contain 398 rental apartments and 28 retail units, and span 392,475 square feet. The package’s addresses are 283 Albany Avenue in Crown Heights, 219 13th Street in Park Slope, 5416-5422 Fourth Avenue in Sunset Park and 429 Lincoln Place in Prospect Heights. Most of the buildings are in Bedford-Stuyvesant, Bushwick, and Crown Heights.

Silvershore hired a Cushman & Wakefield team led by Bob Knakal and Stephen Palmese to market the properties, the firm confirmed.

“The properties in this portfolio are in extremely high demand and this is an opportunity for a buyer to capitalize on the tremendous future potential of Brooklyn,” Knakal said in a statement.

About a year ago, an affiliate of Silvershore warned of a “major decline” in property values and a further market softening in a letter to Brooklyn homeowners urging them to sell.

The multifamily market has continued to experience a slowdown from the record year of 2015, though very few investors have sought to sell their multifamily holdings in bulk. In the past two years, for example, the Dermot Company sold all of its rent-stabilized holdings to A&E Real Estate Holdings in a 32-building, $360 million deal, and the Brock family cashed out in an $80 million, 14-building sale in Chelsea to Black Spruce Management.

Silvershore, founded in 2008, has been doing more selling than buying as of late. In 2015, for example, the firm sold a 10-building portfolio in Brooklyn and Queens to Related Companies for $39.4 million.

Brooklyn has seen a few portfolio deals recently. Oak Tree Residential and Management and Avanath Capital Management are buying 18 buildings in the borough for $76 million, and A&E picked up five buildings for $89 million in December.

Correction: A previous version of this story incorrectly stated the number of buildings on market. It is 44.