Amid all the confusion over the new rent-stabilization laws, free-market rentals remain a sure thing.
Meadow Partners sold its 100-percent free market Williamsburg apartment building for $61 million, sources told The Real Deal.
A high-net worth private family purchased the 73-unit building known as the Rocket Lofts at 100 South 4th Street, sources said. The identity of the private family was not immediately known.
Timothy Yantz, head of investments for Meadow Partners in the United States, said the building received strong interest due to the fact that none of its units are subject to rent stabilization.
“When we put the property on the market, it obviously got a lot of attention because it was 100 percent free-market,” he said. “It was very straightforward to underwrite because it didn’t come with that political risk.”
The purchase price works out to about $890 per rentable square foot.
The seven-story building on the south side of Williamsburg between Berry Street and Bedford Avenue includes 73 loft-style apartments with 12-foot ceilings, spanning nearly 68,500 square feet. All of the units are free market. Canvas Property Group will be managing the property.
Meadow Partners paid $52 million in 2014 to purchase the building out of bankruptcy from investors Israel Perlmutter and the late Menachem Stark — the Brooklyn landlord who earlier that year was murdered and found discarded in a dumpster in Great Neck.
Meadow Partners also owns the commercial building abutting the rear of the Rocket Lofts on the other side of block at 109 South 5th Street, which it purchased in 2015 for $42 million.
HWE’s Daniel Parker and Paul Gillen
A Hodges Ward Elliott team of Daniel Parker, Paul Gillen, Allie Boyan, Ariel Tambor and Kyle Van Buitenen negotiated the sale on behalf of Meadow Partners. The brokers declined to comment.
The same team earlier this year sold the 20-story rental building at 424 Bedford Avenue in Williamsburg to Eyal Ofer’s Global Holdings Group for nearly $44 million. The brokers also sold a pair of Bronx apartment buildings to Abraham Fruchthandler for $88 million.
The brokers are currently marketing a loft-apartment building near the Brooklyn Navy Yard, with pricing guidance in the high $60 million range.