Davean Holdings and Meadow Partners bought 12 free-market buildings in Manhattan and Brooklyn for $58 million in separate, all-cash deals — the latest sign that investors are betting again on New York City.
The New York-based firms purchased the small, mixed-use properties from a variety of sellers. After closing on the purchases, the group secured $50.5 million in cross-collateralized financing from Fortress Investment Group.
David Lloyd, the co-founder of Davean Holdings, said his company has been able to buy from institutional and mom-and-pop landlords. In the most recent deal, the firm acquired all the properties as one-offs rather than as a portfolio.
“Big picture, we are bullish on New York,” said Lloyd, who said his existing portfolio is 100 percent leased.
The Brooklyn properties include 143 Noble Street, 420 Seventh Avenue, 426 Seventh Avenue, 428 Seventh Avenue, 368 Court Street, 475 Sixth Avenue, 1501 Eighth Avenue and 159 Newel Street. In Manhattan, the properties are at: 231 Sullivan Street, 235 Sullivan Street, 164 First Avenue and 53-55 Stone Street.
Walker & Dunlop’s Adam Schwartz and Mo Beler brokered the financing.
Davean Holdings, which Lloyd co-founded with Sean Lefkovits in 2017, has a portfolio worth north of $230 million. Meadow Partners, a real estate investment firm, is Davean’s equity partner in the 12-property acquisition.
New York City deals slowed at the beginning of the pandemic, but investors are returning to the market. With rents returning to pre-pandemic levels, many are focused on multifamily. This month, Adam Mermelstein’s Treetop Development bought 13 apartment buildings in Brooklyn for $76 million, the company’s first investment in New York after a hiatus in dealmaking.