American Realty Advisors eats $10.7M on Williamsburg sale

Red ink for investor who paid highest price per unit ever in Brooklyn

New York /
Aug.August 27, 2020 05:49 PM
111 Kent Avenue and Stanley Iezman (Credit: Google Maps)

111 Kent Avenue and Stanley Iezman (Credit: Google Maps)

Eight years ago a California firm bought a Williamsburg apartment building for about $900,000 per unit — the most ever paid for a multifamily building in Brooklyn.

The market never caught up.

Now the buyer, American Realty Advisors, a Glendale, Calif.-based institutional investor and manager, is moving on. It has sold the luxury rental building at 111 Kent Avenue for $10.7 million less than it paid.

The company, which shelled out $56 million for the 82,081-square-foot building in 2012, sold it for $45.3 million in a transaction that closed Aug. 14, according to public records.

The Real Deal examined a sample of nine multifamily buildings sold in Williamsburg in the first half of 2020 and found only one where the price per unit exceeded what ARA originally paid.

ARA’s investment was in part a victim of the real estate cycle. The market began running up in 2012 and peaked in 2015, said Ofer Cohen, founder and president of TerraCRG, a Brooklyn-focused commercial brokerage.

An ARA representative declined to comment about what motivated its sale of the property.

Beijing-based property developer Yihai Group purchased the building through its North American division, according to the website Traded, which first reported the transaction.

Available units in the building include a three-bedroom, two-bathroom for $6,497 after a rent concession of 1.5 months, and a two-bedroom, two-bathroom for $4,633 after the same concession, according to StreetEasy.

Originally conceived as a condo project, the building broke ground in 2007 before the developer defaulted on its financing. The land for the building was purchased for $15.7 million.

Garrison Investment Group bought the property for $43 million in 2010 when nine units had sold. Laurence Gluck’s Stellar Management decided in 2011 to convert the building to rentals, committing $8 million, adding amenities and completing the conversion.

Contact Orion Jones at [email protected]


Related Articles

arrow_forward_ios
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Clockwise from left: John D. Rockefeller, Izzy Englander, Steven Mnuchin, David Koch, Jacqueline Bouvier, and William Zeckendorf (Credit: Getty Images and StreetEasy)
For 15 years, David Koch lived at the world’s “richest building”
For 15 years, David Koch lived at the world’s “richest building”
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Here are the week’s top luxury sales
WhyHotel opening living space at Rudin’s 110 Wall Street
WhyHotel opening living space at Rudin’s 110 Wall Street
WhyHotel opening living space at Rudin’s 110 Wall Street
44 West 37th Street and Ray Yadidi of the Sioni Group (Google Maps, LeadCandy)
Yadidis sell Midtown South office building for $49M
Yadidis sell Midtown South office building for $49M
Construction labor management platform Bridgit raises $24M
Construction labor management platform Bridgit raises $24M
Construction labor management platform Bridgit raises $24M
The boom is largely fueled by investors snagging a large number of single properties in a multitude of deals, rather than previous booms featuring plentiful portfolio sales, or sales of entire companies. (iStock)
CRE has biggest-ever sales quarter
CRE has biggest-ever sales quarter
Givenchy is open at 92 Greene Street in Soho NYC and Gucci has a pop up 446 West 14th Street in Meatpacking District NYC. (Google Maps, Thor)
Tony retailers flocking back downtown
Tony retailers flocking back downtown
arrow_forward_ios

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

Loading...