Queens multifamily portfolio hits market for $99M

383-unit complex has room to build more units

New York /
Feb.February 08, 2021 07:00 AM
The Briarwood portfolio (B6 Real Estate)

The Briarwood portfolio (B6 Real Estate)

 

The Musso Group is looking to sell its four-building multifamily portfolio in Briarwood, Queens, with an asking price of $99 million.

The Long Island real estate firm bought a pair of apartment buildings at 80-08 and 81-10 135th Street in 2009 for $28 million. Those properties have a combined 278 residential units and one professional unit. The company then built two more luxury rental buildings with a total of 104 units at 80-09 and 81-09 134th Street.

The 382,000-square-foot, 383-unit complex also includes 116 parking spaces, along with 28,000 square feet of additional development rights, according to B6 Real Estate Advisors’ Thomas Donovan, who heads a team of brokers representing the seller.

The pricing comes down to about $259 per square foot, or about $258,500 per unit, with the cap rate of 5 percent, according to B6.

“The new buildings are magnificent, and the old buildings have been maintained in pristine condition,” he said. “It’s a really nice product near the subway, [with] nice views.”

Most of the apartments in the portfolio are rent-stabilized, Donovan said, with 30 that are market-rate. The original buildings, which date back to 1949, are nearly fully occupied. Leasing went well for the first of the two new buildings, with most of its 54 units rented as of Feb. 1. Leasing has yet to begin at the second of the new properties.

The city’s multifamily sector was negatively affected by the state’s sweeping rent law reforms in June 2019, and the pandemic further slowed the market. In Queens, a total of 26 multifamily sales were recorded in the fourth quarter, down 54 percent compared to the same period last year, according to a recent market report by Ariel Property Advisors.

Nearly a year into the health crisis, however, investors started moving again as they have more data to work with, said Ariel’s president Shimon Shkury.

“There’s a lot more pricing discovery today than there was a year ago,” he said. “There will be more pricing discoveries throughout this year.”





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