Related buys four-building BK portfolio for $30M
BCB added fifth floor to each of the Prospect Heights walk-ups
The Related Companies, in partnership with New York City pension funds, picked up a four-building Prospect Heights portfolio from Debrah Lee Charatan’s BCB Property Management for $30 million, or about $570 per square foot, sources told The Real Deal.
The contiguous five-story walk-ups at 315-329 Lincoln Place, about a block from Brooklyn Museum, collectively span 52,543 square feet. The buildings have 48 apartments — a mix of rent-stabilized and free-market — and a capitalization rate of 3.79 percent.
Related Fund Management and the pension funds closed Wednesday on the all-cash purchase, sources said. The partnership seeks to preserve workforce housing in the city.
BCB bought the package from Bay Ridge-based investor Alessandro Pirozzi for $12.8 million in January 2014. This summer, BCB finished the renovation of an additional fifth floor across all four buildings, resulting in two more apartments apiece.
Representatives for Related [TRDataCustom] and BCB declined to comment. Related didn’t use a broker. Cushman & Wakefield’s Stephen Palmese represented BCB in the deal.
BCB has been selling off most of its holdings through on-the-market channels. The firm recently hired Cushman to market six Manhattan buildings for $125 million and TerraCRG to market three Williamsburg buildings for $50 million.
Last year, Novel Property Ventures, a firm jointly headed by Debrah Lee Charatan’s son Bennat Charatan Berger and Andrew Miller, paid $23.5 million for a 55-unit building nearby 362-384 Lincoln Place.
Related has been an aggressive multifamily buyer in the outer boroughs. The development giant acquired a 444-unit package of Section 8 housing in Astoria earlier this year for $115 million, and did the Bronx’s largest multifamily deal of last year – a 737-unit portfolio for $112.5 million — also in partnership with city pension funds.