Greystone eyes $40M-plus for Park Slope luxury apartments

Listing follows a burst of activity in the Brooklyn multifamily market

Greystone Development CEO Thomas Ryan and an image of the project (Courtesy of James Hooker, Greystone)
Greystone Development CEO Thomas Ryan and an image of the project (Courtesy of James Hooker, Greystone)

Greystone Development is looking to get north of $40 million for its new luxury rental apartment building in Park Slope.

The development firm built the 63-unit, 13-story property at 223 Fourth Avenue, dubbed 223 Park Slope, in 2018.

The tail end of the lease-up period for the building was caught by the pandemic. But sources close to the property said the demand remained strong, and the current occupancy is about 91 percent. More than 30 leases have been signed in the past six months, averaging $66 per square foot, with an average concession of one-month free-rent. A monthly rent for a typical one-bedroom is at around $3,650.

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The seller hasn’t set an asking price for the property, but its pricing guidance is in the mid-$40 million, with the initial cap rate of about 5 percent, according to the sources. The property is under the 421a tax abatement until 2035.

Daniel Parker, Paul Gillen, Anthony Ledesma and Allie Boyan at Hodges Ward Elliott are the exclusive sales brokers for the property located next to the Brooklyn Lyceum and atop the Union Street subway station.

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“This section of Park Slope is the corner of classic and cutting edge, which is why I think 223 Fourth Avenue has enjoyed a strong pandemic performance,” Parker said.

The building has mostly studios and one-bedroom apartments, and includes has a roof-deck with Manhattan views. A Starbucks store occupies part of the ground-floor retail space.

Brooklyn’s rental market has shown resilience during the pandemic compared to Manhattan. August’s year-over-year median rent in Brooklyn was down only by 0.7 percent, while Manhattan’s median rent was down by 3.9 percent, according to the Douglas Elliman’s recent rental report.

Brooklyn’s multifamily investment market has been active, too.

Goldman Sachs recently bought the 19-story residential building at 1 Flatbush Avenue from Slate Property Group and Meadow Partners for about $100 million.

Private equity giant KKR, in partnership with Dalan Management, is buying the 14-building multifamily portfolio in Brooklyn from Joseph Brunner and Abe Mandel’s Bruman Realty, for $860 million, according to Bloomberg.

And American Realty Advisors sold a Williamsburg apartment building at 111 Kent for $45.3 million, which was $11 million less than what it paid for the building in 2012. The buyer was Beijing-based property developer Yihai Group.