Dermot buys Boerum Hill rental for $142M
Maryland-based real estate fund takes $12M hit from 2016 purchase
A Maryland-based real estate fund is calling it quits on a Boerum Hill rental building, and taking a small hit in the process.
The Dermot Company picked up The Addison at 225 Schermerhorn Street for $142.3 million, the Commercial Observer reported. The seller was Multi-Employer Property Trust, a fund managed by BentellGreenOak.
The fund purchased the 271-unit multifamily property from Waterton Associates in 2016 for $154.3 million.
Dermot made its Brooklyn purchase in partnership with USAA Real Estate and PGGM. Capital One provided acquisition financing for the two-building asset, but the amount of financing was not reported.
A JLL Capital Markets team including Jeffrey Julien and Rob Hinckley marketed the property on behalf of BGO. A JLL team including Steven Klein and Christopher Pratt helped to arrange Capital One’s loan.
The Addison was built in 2011 and is divided between 65 studios, 117 one-bedroom units and 89 two-bedroom units. There are also three ground-floor retail spaces and a 109-spot parking garage below grade.
Parts of the property are beneficiaries of the expiring 421a tax abatement. Two of the property’s four tax lots have about three to four years remaining on a 15-year abatement, while the other two lots are nearing the end of a 25-year abatement.
Dermot, a New York City-based investment firm, made another big move in the multifamily market in April. It dropped $180 million on a 302-unit apartment building in Midwood, Brooklyn, the largest in Brooklyn this year at the time.
Seller Northlink Capital, an affiliate of Hampshire Properties, bought the property for only $20 million in 2014. It was the site of a 90-year-old building once used by Vitagraph Studios, a silent film company. Hampshire took out a $92 million construction loan in 2018 to develop an apartment building.
[CO] — Holden Walter-Warner