Stung by NY rent laws, Rosewood Realty is going nationwide

The brokerage, which had specialized in multifamily deals, will also focus on office and mixed-use properties in different markets

Feb.February 28, 2020 12:00 PM
From left: Jonathan Brody, Aaron Jungreis, and Alan Soclof

From left: Jonathan Brody, Aaron Jungreis, and Alan Soclof

Rosewood Realty Group is launching a national brokerage division that will focus solely on off-market properties outside its New York metro area base, which the company said is in response to strict state rent laws passed last year. Rosewood announced the expansion Thursday.

Led by Aaron Jungreis, Rosewood has tapped in-house broker Jonathan Brody to lead the new division as its vice president of national investment sales, and Rosewood’s Alan Soclof will be the director of the new division. The Manhattan-based firm has focused on the multifamily market but will also target office and mixed-use properties in its expansion.

“We are taking the same Rosewood approach to New York and applying it to specific states in up-and-coming markets,” Jungreis said in a statement. The company already has office and multifamily deals in the pipeline for markets including Florida, Texas, Michigan, Philadelphia and Washington D.C. It has closed more than $120 million worth of deals so far, according to Jungreis and Brody.

The move comes in response to new rent regulations that New York’s state legislature passed and that Gov. Andrew Cuomo signed into law in June. The real estate community has blamed those rules for squeezing profits and dramatically slowing down transactions in the city’s multifamily market, which was Rosewood’s specialty.

Rosewood placed fifth in The Real Deal’s ranking of investment sales firms with $1.7 billion worth of sales in 2018.

Soon after New York’s rent law changes last year, Jungreis told The Real Deal that his firm had already started pivoting away from focusing so strongly on multifamily deals, and Brody indicated in a statement that this new division was part of that effort.

“We prepared ourselves for NYC’s rent law change that went into effect this past June,” he said. “We formed a team quickly and began our journey in other targeted markets.”

Related Articles

Jorge Perez and Masoud Shojaee with  the Flats Apartments at CityPlace Doral (Credit: Google Maps)

Related, Shoma, PGIM sell Doral apartments for $100M amid coronavirus pandemic

Arthur Porosoff, Stefano Garofoli, Costantino Cicchelli and Frank Rodriguez Melo with the Omni property

Investment group buys multifamily buildings in Little Havana, Omni

Joseph P. Thomas, Adam Duncan and Tyler Carbonelli with the Fort Lauderdale properties

California investors buy multifamily portfolio in Fort Lauderdale

Rendering of the project

Time Equities plans apartments, retail on former office site in West Palm

Shorecrest Club Apartments

CBRE fund pays $132M for Shorecrest Club Apartments in Miami

Arnaud Karsenti, Michael Adler and the Link at Douglas

Douglas Station project scores $99M loan for second tower

Rendering of Soleste Twenty2 and Robert Suris

Estate Companies completes 338-unit West Miami project

A rendering of Society Las Olas (Credit: Facebook)

16K apartments to be delivered in South Florida this year: report