The Real Deal New York

Large Brooklyn multifamily portfolio hits
the market

Parkway Realty Group has owned properties since as early as 1996
By Rich Bockmann | February 28, 2019 06:37PM

From left: 210-216 Putnam Avenue and 117-121 Jefferson Avenue (Credit: Google Maps)

Another large multifamily portfolio is up for sale as Albany lawmakers consider reforming the state’s rent-regulation laws.

Brooklyn landlord Parkway Realty Group has put its nine-building, 291-unit Parkside Portfolio on the market with an asking price of $104 million, the brokers listing the properties told The Real Deal.

“Given the political climate with regard to rent stabilization, some will say it’s too risky to jump into stabilized assets now,” said Adam Hess at Meridian Investment Sales. “I think smart investors will understand that market turbulence creates opportunity.”

Adam Hess

The asking price for the portfolio works out to more than $357,000 per unit.

Following last year’s state elections, Democrats who took over control of the State Senate are expected to introduce legislation that will make it harder to deregulate apartments or raise rents on regulated units. Industry experts are predicting it could significantly deter investors who buy apartment buildings with plans to deregulate units and increase rent rolls.

As all eyes turn to Albany waiting for lawmakers’ next move, some have decided to test investor sentiment in the market.

Last week, the Kestenbaum family put its 539-unit, 18-property Rego Park portfolio on the market with an asking price of $210 million, or nearly $390,000 per unit.

The Parkside Portfolio – which his Parkway Realty started piecing together in 1996 – includes 291 residential units and five commercial spaces spanning about 233,500 square feet. The properties could be sold as a package or individually, according to Meridian. Nearly all of the apartments are rent-stabilized, according to Reonomy.

The largest piece of the portfolio is a pair of buildings at 210-216 Putnam Avenue and 117-121 Jefferson Avenue in Bedford-Stuyvesant with a combined 92 units. The other properties are 307 Eastern Parkway (40 units), 1178 Eastern Parkway (25 units), 1004 Union Street (35 units) and 446 Park Place (11 units) in Crown Heights, as well as 320 Empire Boulevard (77 units) and 615 Flatbush Avenue (16 units) in Prospect-Lefferts Gardens.

Hess is marketing the portfolio with his team that includes Edward Setton and Aaron Birns. The brokers are currently involved in litigation over their departure from TerraCRG last summer.