Fairstead picks up 42-building Sunset Park portfolio

Firm struck deal with city to keep the 403 units affordable for 30 years

TRD New York /
Jun.June 16, 2017 06:10 PM

Fairstead Capital picked up a 42-building affordable housing portfolio in Sunset Park from Irving Langer’s E&M Associates, the firm told The Real Deal.

The portfolio holds 403 Section 8 apartments in four housing complexes in the Brooklyn neighborhood. The price was not immediately clear, but sources active in the neighborhood said they are collectively worth somewhere north of $100 million.

As part of the deal, Fairstead struck new regulatory agreements with the New York City Department of Housing Preservation and Development to keep all of the units affordable for the next 30 years, the firm said. Fairstead plans to make extensive capital improvements, including upgrading the common areas and energy systems and making in-unit repairs.

In a statement, a Fairstead representative said, “The purchase represents Fairstead’s continued support for New York City affordable housing and long-term belief in the Brooklyn market.” The firm declined to comment on the price.

Property records show E&M has owned the buildings since 1982, under the entities of Neighborhood Stabilization Associates I and II.

In 2015, E&M opted to renew the complexes’ contracts with the Section 8 program for another five years, following an outcry from tenants over a warning notice saying the landlord did not intend to renew.

Addresses include 438, 441-445, 517 and 549 49th Street; 448 and 523 51st Street; 334 and 574 53rd Street; 224 54th Street; 364-370 55th Street; 565 56th Street; 4702-4704, 5500 and 5609 Fourth Avenue; and 4920-4922, 5203-5213, 5302-5310, 5319-5323 and 5301-5311 Sixth Avenue.

A representative for E&M could not be immediately reached. The deal was done without brokers, sources said.

The multifamily package is one of the largest packages to trade so far this year. Oak Tree Residential and Management and Avanath Capital Management closed last month on the purchase of 18 Brooklyn buildings for $76 million. Meanwhile, Silvershore Properties is trying to sell 57 of its buildings, some of which are in Sunset Park.

Fairstead and E&M are two of the city’s most active multifamily investors. They’ve partnered in the past on properties including the 47-building Dawnay Day portfolio in East Harlem. Fairstead and E&M affiliate Galil Management sold those buildings to Isaac Kassirer’s Emerald Equities last year for $357.5 million.

Fairstead, led by CBRE brokers Stephen Siegel and Andrew Goldberg and partners Jeff Goldberg and Will Blodgett, owns more than 6,000 apartments in the city. The firm’s holdings include the Caiola portfolio, which it purchased with Blackstone Group for $690 million in 2015, and Savoy Park, which it bought for $315 million last year.


Related Articles

arrow_forward_ios
Brooklyn’s Sunset Park is in the midst of a severe housing crisis and in desperate need of affordable housing. (Photo by Jim.henderson via Wikipedia)

Sunset Park faces severe affordable housing shortage: report

Sunset Park faces severe affordable housing shortage: report
HelloFresh’s NYC HQ (Courtesy of Industry City, HelloFresh by Eric Laignel)

HelloFresh inks Industry City deal for content studio

HelloFresh inks Industry City deal for content studio
The Real Deal's Kathryn Brenzel and Steiner Equities' Doug Steiner

Doug Steiner talks Steiner Studios’ Brooklyn expansion

Doug Steiner talks Steiner Studios’ Brooklyn expansion
6201 15th Avenue in Bensonhurst and 185 Claremont Avenue with BlackRock CEO Larry Fink (Google Maps; Fink by Eugene Gologursky/Getty Images for IRC)

Pandemic-proof, $29.5M deal for Brooklyn office building closes

Pandemic-proof, $29.5M deal for Brooklyn office building closes
Rendering of Bush Terminal at Sunset Park (Courtesy of Synoesis)

Steiner Studios to build TV and production facility in Sunset Park

Steiner Studios to build TV and production facility in Sunset Park
Council member Carlos Menchaca and Industry City (Getty, Wikipedia)

Industry City rezoning is effectively dead

Industry City rezoning is effectively dead
Congresswoman Nydia Velázquez, Congressman Jerry Nadler and Council Member Carlos Menchaca (Credit: Getty Images, Google Maps)

Pols pounce as city caves in on Sunset Park property

Pols pounce as city caves in on Sunset Park property
Liberty View Plaza at 850 3rd Avenue and Marvin Schein (inset) (Photo by Axel Dupeux)

City lets Salmar bring office tenants to Brooklyn industrial property

City lets Salmar bring office tenants to Brooklyn industrial property
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...