Dov Hertz is partnering with the Fruchthandler family to buy a 10-building portfolio in Manhattan and Brooklyn for north of $125 million, sources told The Real Deal.
The deal would mark Hertz’s first big purchase since the former acquisitions guru for Extell Development launched his own firm DH Property Holdings in November. The package features six buildings in Manhattan and four in Brooklyn – all residential rentals except for one 11-story office building at 109-111 West 27th Street, sources said.
The seller is EJ Realty, led by Efraim Lesser and Jeffrey Braun, father-in-law to Extell chief Gary Barnett. The Braun family amassed the portfolio over the years, mostly in the 1970s and 1980s, records show. Sources said Braun, who is reportedly in his 70s, had been looking to sell all of his assets. When this deal closes, he will be out of the business.
The Fruchthandlers’ FBE Limited, which frequently partners with real estate mogul Ruby Schron, and DH Property Holdings entered contract on the purchase earlier this year and are slated to close this summer, sources said.
The addresses include 59-63 East 3rd Street in the Bowery, 41 and 43-45 White Street in Tribeca, 74 Franklin Street in Tribeca, 105-131 East 86th Street on the Upper East Side, 625 Marlborough Road in Ditmas Park and 130 East 18th Street in Prospect Park South.
Representatives for DH Property, FBE Limited and Extell declined to comment. Braun could not be immediately reached.
For 13 years, Hertz worked at Extell assembling land for the developer’s projects. He stopped working at Extell full-time last fall to start his own investment firm.
Barnett told TRD in an interview last month that Hertz is still working for Extell “a little bit, on a consulting basis.” He said he arranged for Hertz to buy the portfolio, which Extell was not interested in for itself.
“He’s got a good head start and God willing he’ll succeed,” said Barnett, who declined to comment further.
Last year, the Fruchthandler family bought a nine-story transitional housing facility in Flatbush for $31 million and, with partners, sold two large warehouses in Clinton Hill and Long Island City for $161 million and $195 million respectively.