Brodsky selling DoBro apartments for $100M

Avanath Capital Management in contract on 7 DeKalb at City Point

7 DeKalb Avenue with Avanath Capital Management CEO Daryl Carter and Daniel Brodsky (Brodsky, Avanath Capital, Getty)
7 DeKalb Avenue with Avanath Capital Management CEO Daryl Carter and Daniel Brodsky (Brodsky, Avanath Capital, Getty)

The Brodsky family has a deal to sell its rental building at the City Point Center in Downtown Brooklyn for a little more than $100 million.

The Brodsky Organization is in contract to sell the 250-unit tower at 7 DeKalb Avenue to California-based Avanath Capital Management, The Real Deal has learned.

The purchase price is only slightly above the $100 million that Brodsky paid in 2017 for the 23-story tower from developers Acadia Realty Trust, Washington Square Partners and BFC Partners.

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The explanation for the only nominal appreciation in value, according to a source, is 7 DeKalb’s large affordable-housing component. Rent stabilization is in place in 80 percent of units at the tower, which is part of the 1.8 million-square-foot, mixed-use City Point development.

Representatives for Brodsky and Avanath were not immediately available for comment. A team at Newmark led by Brett Siegel and Evan Layne brokered the sale.

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The deal is expected to close early next year. One factor that helped get it done is that 7 DeKalb has an assumable mortgage — a feature that’s become a valuable selling point given the jump in interest rates this year.

Avanath is taking over the $58 million Wells Fargo loan, which runs to 2027.

Headquartered in Irvine, south of Los Angeles, the firm has been busy in Brooklyn lately. Earlier this year the company paid $315 million to buy two multifamily buildings at Pacific Park from Greenland USA.

The private investment firm, headed by CEO Daryl Carter, teamed up in 2020 with another Black-owned firm, San Francisco-based MacFarlane Partners, to launch Aspire Real Estate Investors, which they billed as the first publicly traded REIT to focus on affordable and workforce multifamily housing.

Aspire withdrew its $300 million IPO later that year, citing market conditions.