Bushburg buys Bed-Stuy rental complex for $38M

The four buildings on Fulton Street span 277K sf and hold 288 apartments

1711-1751 Fulton Street in Bedford-Stuyvesant (inset: Aaron Jungreis)
1711-1751 Fulton Street in Bedford-Stuyvesant (inset: Aaron Jungreis)

Bushburg Properties picked up a four-building, 283-unit Bedford-Stuyvesant apartment complex from E&M Associates for $38 million, The Real Deal has learned.

The 277,200-square-foot complex at 1711-1751 Fulton Street, also known as 88-132 Chauncey Street, is part of the Mitchell-Lama federal mortgage interest subsidy program. The six-story elevator buildings include a total of nine commercial units, largely mom-and-pop stores.

The buildings’ Mitchell-Lama obligations are ending later this year and a new owner would have the option to opt out of the program, according to documents obtained by TRD.

Rosewood Realty Group’s Aaron Jungreis represented both sides in the deal.

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The properties asked just north of $40 million and were in contract for about a year pending city approval, Jungreis said.

Bushburg, a Kensington-based development firm, plans to own the buildings for the long term, said CEO Joseph Hoffman. The developer filed plans last year to construct a 12-story apartment building in South Slope.

Also, last year, E&M, a Flatbush-based multifamily investment firm led by Irving Langer, sold a 13-building, Bronx-centric rental portfolio for $53.7 million.

Earlier today, TRD reported that Simon Dushinsky’s Rabsky Group is planning nearly 800 units on the edge of Bedford–Stuyvesant.