TF Cornerstone nabs North Williamsburg rental for $71M
Trinity Place Holdings-led JV acquired complex in 2016
UPDATED May 9, 2022, 10 a.m.: TF Cornerstone is continuing to corner its piece of Williamsburg, purchasing a rental complex for $71 million.
The firm purchased The Berkley at 223 North 8th Street last week, the Commercial Observer reported. A partnership of Trinity Place Holdings and Pacolet Milliken Enterprises was the seller of the 95-unit building in North Williamsburg, where 20 percent of the units are set aside for affordable housing.
A JLL Capital Markets team including Steven Klein and Geoff Goldstein arranged $35.5 million in acquisition financing from the insurance firm Nationwide. JLL also marketed the property for the seller, with a team including Jeffrey Julien and Rob Hinckley leading the effort.
Trinity Place and Pacolet Milliken paid $68.8 million to buy the seven-story property from Westbrook Partners and Largo in 2016. Freddie Mac provided a $42.5 million interest-only senior loan for that purchase.
The property consists of two buildings, connected by a courtyard. About 90 percent of the units feature outdoor space, either in the form of a balcony or a terrace. Features of the building include a rooftop lounge, a fitness center, a yoga lawn, bike storage and a parking garage.
The Berkley struggled with vacancy early in the pandemic, but reached 99 percent occupied in the past 12 months, according to Trinity Place; there are no active listings for the property on StreetEasy. The net effective rent growth on new leases is nearly 20 percent.
The trade follows TF Cornerstone and Trinity Place’s $137.7 million purchase of a 234-unit, six-story property at 250 North 10th Street in January 2020 from Nuveen, which paid $169 million for it in 2015.
Last year, TF Cornerstone landed a $385 million construction loan from Wells Fargo for a massive development project in Prospect Heights. The Pacific Park project is slated to consist of two towers totaling 558 market-rate units and 240 affordable units at 595 Dean Street, two blocks from the Barclays Center.
This story has been updated with more details about the deal and to correct details around the TF Cornerstone and Trinity Place’s 2020 purchase.
[CO] — Holden Walter-Warner