As Brack Capital shutters in NY, former CEO bets on Tribeca

6R Capital Realty picks up five mixed-use buildings for $36M

New York /
Jan.January 04, 2022 07:00 AM
6R Capital Realty's Shai Shamir with 70-74 Warren Street (left) and 80-88 West Broadway (IAC, Google Maps)

6R Capital Realty’s Shai Shamir with 70-74 Warren Street (left) and 80-88 West Broadway (IAC, Google Maps)

From one investment firm’s ashes, a new landlord has risen with a bullish outlook on New York multifamily and hospitality.

Shai Shamir, formerly the CEO of Brack Capital Real Estate, launched 6R Capital Realty in November with partner Oz Levi as Brack Capital was winding down operations in the U.S. Shamir said the New York arm of the global firm shut down in 2021.

Last month, as Brack Capital was closing on the sale of its final property — $168 million for the gutted 720 West End Avenue — 6R Capital Realty was just getting started.

The new firm closed on its second acquisition mid-December, PincusCo first reported, spending $36 million in Tribeca for five residential properties with six retail storefronts and a parking lot. The properties sold at $676 per square foot, according to Pincus. The third-quarter average for the sector was $634, down 12 percent from the previous year, according to Avison Young’s market report.

“I think you can see from the price per square foot, we got a good purchase price,” Shamir said.

The seller in the transaction, Mark Jaffe, was a long-term owner who had inherited the buildings from his parents, Shamir said.

The portfolio is overwhelmingly market-rate, with only two stabilized units, Shamir said. That offers considerable upside, given the city’s rising rents.

Tribeca had the second-highest residential rents in the city in November, according to a Zumper analysis, with the median for a one-bedroom in the neighborhood hitting $5,025, less than $100 below No. 1 Chelsea.

Shamir said the buildings are in “good shape” but 6R Capital plans to renovate some of the units and revamp common areas.

The portfolio’s storefronts are filled with commercial tenants, including Park Slope-based Homemade by Miriam, which opened the Tribeca location during the pandemic.

Tribeca-based 6R Capital Realty is named after the terrace roof at its new office. “We used to say, ‘Let’s meet at 6R.’ ‘I’m at 6R,’ et cetera,” said Shamir. “And we became 6R.”

The firm plans to continue expanding, both in multifamily and hospitality. It picked up the Even Hotel in Boerum Hill, Brooklyn, for just under $30 million in November, PincusCo reported.

“As we like to say, don’t wait to buy real estate; buy real estate and wait,” said Levi.





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