Malek, Rebenwurzel in contract for East Flatbush package

Pair of elevator buildings generate $2M annually in revenue

TRD New York /
Sep.September 01, 2017 07:30 AM

From left: Peter Rebenwurzel, 787 East 46th Street and 1261 Schenectady Avenue in Brooklyn

David Malek’s Malek Management and Peter Rebenwurzel‘s Coney Realty Group are in contract to snag a pair of East Flatbush rental buildings for $26.5 million, sources told The Real Deal.

The six-story elevator buildings at 1261 Schenectady Avenue and 787 East 46th Street are located a block apart. They have a combined 127 rental apartments and span 108,600 square feet.

The seller, the Hertz family’s Ditmas Park-based Samjo Realty Corporation, acquired the rent-stabilized buildings for a total of $10 million in 2006, property records show.

If the deal closes, the price would come out to $244 per square foot and almost $209,000 per unit. The closing is slated for November, sources said.

Lipa Lieberman

The portfolio generates $2 million in gross revenue, $879,799 in expenses and $1.2 million in net operating income, according to an offering memorandum obtained by TRD. The document also shows that 33 tenants receive a Section 8 subsidy, either from the New York City Housing Authority or the Department of Housing Preservation and Development.

Annual rent is $954,947 at the East 46th Street property and $1.1 million at The Schenectady Avenue building, the document shows. Both buildings were constructed in the 1960s.

Meridian Capital Group’s Lipa Lieberman, Adam Sprung and Mark Steinmetz and are brokering the deal. The brokers declined to comment, and representatives for Malek and Hertz could not be reached.

Malek, a family firm based in Midwood, makes sporadic small multifamily purchases and maintains a low profile. In 2014, the firm deviated from that style by partnering with Rebenwurzel’s firm to buy a 1,434-unit multifamily package once known as the “King and Queens” portfolio for $236 million.

Related Article

Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)

Here’s what the $10M-$30M NYC investment sales market looked like last week

Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)

New NYC rent law “beginning to shut down investment”

Numbers were down across the board (Credit: iStock)

New York’s multifamily market had its slowest first half of the year since 2011

Rent reform is propelling a new wave of New York and California investors to Miami (Credit: iStock)

Rent reform in New York, California propels new wave of multifamily investors to Miami

From left: 465 East 167th Street and 1178 Washington Avenue (Credit: Google Maps, iStock)

With new rent law, Brooklyn landlord sues to escape contract for rent-stabilized buildings

145 Henry Street and 15-19 Wyckoff Street in Brooklyn 

With sale of two Brooklyn apartment buildings, a family shuts down its portfolio

Clockwise from left: 329 Pleasant Avenue, 419 East 117th Street, 2338 Second Avenue and 2211 Third Avenue with HAP CEO Eran Polack 

HAP Investments pitching East Harlem rental portfolio as $130M upside play

From left: 165 East 66th Street, 110 Bennett Avenue, and 2001-2045 Story Avenue in the Bronx (Credit: CityRealty)

No end in sight: New York’s multifamily market stayed slow in April