Robert Morgenstern shelled out $113 million for a big rental tower in Downtown Brooklyn — his second nine-figure deal in the past few weeks.
Morgenstern’s Canvas Investment Partners and partner Tokyu Land US paid $112.8 million for the 150-unit Azure tower at 436 Albee Square, the buyers told The Real Deal. The seller was Joel Gluck’s Spencer Equity, which developed the 28-story building in 2016.
Morgenstern said they bought the property with low leverage in order to prioritize high cash flow.
“That’s the collective partnership’s approach to use conservative leverage,” he said.
It’s the second deal Morgenstern has done with Tokyu Land US, the Los Angeles-based arm of Japan’s Tokyu Fudosan Holdings Group.
Last month the two paid $105 million to buy a 204-unit rental complex in Gramercy at 210-220 East 22nd Street.
The Azure has a 421a tax abatement in place for another 12 years. Gluck’s Spencer Equity co-developed the building with Yoel Goldman’s All Year Management, which held a 50 percent stake in the property.
All Year fell behind on its debts in recent years, though, and had to file for bankruptcy. The 436 Albee investment was part of the restructuring, but it wasn’t exactly clear what happened with the company’s stake. It’s possible All Year could’ve sold it to Spencer Equity before the sale to Morgenstern and Tokyu.
Aaron Jungreis and Alex Fuchs from Rosewood Realty Group brokered the deal.
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