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New York

Moinian, Bushburg selling Flatbush rental complex for up to $335M

Buyer of 467-unit project at 123 Linden Street has not been disclosed

Moinian Group's Joseph Moinian with 123 Linden Boulevard

Moinian Group’s Joseph Moinian with 123 Linden Boulevard (Moinian Group, Google Maps, Getty)

The Moinian Group and Bushburg Properties are selling one of Flatbush’s largest rental projects just a few years after it opened.

The partners are selling the 467-unit apartment complex at 123 Linden Street for between $325 million and $335 million, PincusCo reported, citing a filing by Moinian on the Tel Aviv Stock Exchange. At that price, the deal works out to about $700,000 per unit.

The buyer was not disclosed. Moinian and Bushburg, which each hold a 50 percent stake in the property, did not immediately respond to requests for comment.

The 26-story development — branded PLG as it sits on the southern edge of Prospect Lefferts Gardens — was completed in 2019 and launched leasing the same year. The property is subject to the 421a tax abatement, which mandates that 141 of its units be reserved for middle-income housing.

A market-rate studio apartment in the building is listed for $2,750 a month, while a three-bedroom unit is listed for slightly more than double that. Amenities in the complex include a fitness center, a spa and a rooftop pool.

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Moinian financed the construction with a $160 million loan from Moinian Capital Partners, its lending arm. An AIG subsidiary provided the developers a $170 million refinancing a couple of years ago, only for the Bank of China to replace it with a $223 million loan months later.

The original team behind the building were Brooklyn investors Solomon Feder and Israel Neiman, who purchased the site, a former nursing home, in 2016 for $18.5 million. Moinian took its 50 percent stake in 2017, lending Feder up to $160 million and upping its investment in the project to nearly $20 million.

Brooklyn has seen a precipitous decline in investment sales this year as rising interest rates and growing recessionary fears have taken hold. In the first quarter, the dollar volume of investment sales in the borough fell 49 percent year-over-year, according to TerraCRG. Multifamily transactions were down 43 percent year-over-year and 73 percent from the fourth quarter.

For Moinian, the sale comes a few months after it offloaded a shuttered hotel and adjacent development site near LaGuardia Airport to Bayrock Capital for $50 million.

— Holden Walter-Warner

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BrooklynFlatbushMoinian GroupMultifamily Market