Apartment buildings sell way above asking price

Real Estate Weekly,  July 11, 2007  

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Massey Knakal Realty Services has sold a four-story walk-up apartment building and a six-story elevatored apartment building at 1317 East 14th Street and 1401 Elm Avenue, respectively, in the Midwood section of Brooklyn in an all-cash transaction valued at $10,000,000.

The properties are located directly across the street from one another, which helps in minimizing the operator's cost basis.

Combined, the properties contain 84 residential units, three ground floor retail units and two office units over approximately 77,950 square feet. In the 14th Street property, 24 of the 51 units were delivered vacant.

The transaction occurred at a capitalization rate of 5.93% and a gross rent multiple of 10.17. The properties sold for $128.28 per square foot to a Brooklyn investor who plans on continuing the buildings as rentals.

"Located on an active block in Midwood, the properties were primarily rent stablized," said Massey Knakal broker Brock Emmetsberger, who exclusively represented the seller with broker Eric Greenfield. "It sold at a price level significantly above the asking price."

Massey Knakal Realty Services was the sole broker in this transaction.

COPYRIGHT 2007 Hagedorn Publication
COPYRIGHT 2008 Gale, Cengage Learning