The Real Deal New York

Acadia, Washington Sq. Partners put City Point building on the market

The largely affordable 250-unit rental at 7 DeKalb opened last year
By Mark Maurer | April 21, 2017 12:15PM

Paul Travis, Chris Conlon and 7 Dekalb Avenue

Acadia Realty Trust and Washington Square Partners are looking to sell their majority stake in affordable housing building in the City Point megacomplex in Downtown Brooklyn, The Real Deal has learned.

The 23-story, 230,000-square-foot property at 7 Dekalb Avenue opened in March 2016 as the first phase of the three-building, 1.8 million-square-foot development. Of the 250 apartments, 200 – or 80 percent — are affordable.

The developers hired a CBRE team led by Darcy Stacom to market controlling ownership in the building, sources said. BFC Partners, which led the building’s development and has a small minority stake, would remain an owner, sources added.

Sources familiar with the complex said the building is worth nearly $100 million, or about $435 per square foot.

Representatives for Acadia, BFC and CBRE declined to comment, while Washington Square Partners could not be reached.

The developers faced intense demand for the building’s affordable apartments, with nearly 88,000 rental applications submitted in a city-run lottery.

The second phase, the Brodsky Organization’s 48-story, 440-unit market-rate rental building, also opened last year and the third phase, Extell Development’s 59-story tower at 138 Willoughby Street, is slated for completion in 2020.

In an interview last month with Extell chief Gary Barnett, he said the Willoughby Street tower will hold small units and either be co-op or condo.

In full, the complex holds 1,148 rental apartments, a 675,000-square-foot shopping center and 30,000 square feet of office space.