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.
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.