UPDATED, 12:45 p.m., Sept. 30: An investment fund formed by Massey Knakal Realty Services and RiverOak Investment closed its third deal since being launched in 2011 — this one to acquire a $17.5 million rental property in Williamsburg.
The fund partnered with the Westbury, L.I.-based Kalikow Group to purchase 68 Richardson Street, a 32,500-square-foot, 24-unit rental building located between Lorimer and Leonard streets, from Dabby Investments. The six-story building has a commercial space as well, and is one block south of McCarren Park.
In 2012, Massey Knakal and RiverOak announced that the fund, MKRO I LLC, would raise about $50 million. That target figure has since been reduced to $35 million.
According to George Yerrall, chief investment officer at RiverOak, about $25 million has been raised for the fund so far.
“We are looking to do another eight of these [types of investments],” Yerrall said. “What we brought to our investors was a concept of a diversified portfolio in the boroughs and Manhattan.”
The fund is targeting investments of about $25 million or less in New York City.
Marcus & Millichap’s Michael Salvatico, Shaun Riney and James Saros represented the buyers, while Matthew Fotis, Salvatico, Riney and Saros represented the seller.
“Williamsburg has emerged as one of the most desirable residential areas in the city for young professionals over the past several years, and we are thrilled to complete this acquisition,” Gregory Kalikow, vice president of the Kalikow Group, said in a statement. The Kalikow Group’s Kaled Management, will operate the building for the joint venture.
In addition to this latest buy, the fund has invested in a 37-unit rental building at 885 Park Avenue in Bushwick. That acquisition, which cost $18 million, was done in partnership with DSA Realty Services. The investment fund also bought a 197-unit portfolio in Upper Manhattan in partnership with Castellan Real Estate Partners.