Bed-Stuy 10 Portfolio, Brooklyn, NY 11216, 11221, 11233

Bedford Stuyvesant, Stuyvesant Heights, Brooklyn, New York 11216, 11221, 11233

$32,500,000  

Listing ID Number

25311

Property Description

Cushman and Wakefield has been retained on an exclusive basis to sell The Bed-Stuy 10 Portfolio, one of the largest portfolios of buildings ever offered in Bedford-Stuyvesant. In total, the portfolio consists of 10 well positioned walk-up buildings, 89 units, 200+ bedrooms, and approximately 67,733 gross square feet. All of the properties are located in Bedford- Stuyvesant, allowing an investor to establish an immediate foothold in one of the most rapidly appreciating neighborhoods in Brooklyn. Each building offers a different eliminate of upside, collectively presenting investors with a perfect blend of immediate value-add, financeable in-place yield, and long-term growth opportunities. This is truly one of the most attractive offerings on the market.

Both Immediate and Long-term Upside:
80% of the portfolio is either permanently exempt by the DHCR or operating under preferential leases. The average rent per GSF across the portfolio is $30, and our asking price of $32.5M represents a total price per GSF of $479, both metrics suggesting significant upside in value, especially for a mostly destabilized package. The clear and immediate opportunity is to improve the rent roll by repositioning the un-renovated units or by making minor improvements to the already renovated units, completed back in 2012. The remaining 20% of the units, as well as the natural appreciation of Bedford-Stuyvesant, present a steady increase in value over time.

Highly Financeable;
While the debt market has become more selective in other product types, multifamily buildings with steady in-place yields are still heavily sought after by lenders. This portfolio offers a low basis with a predictable and consistent NOI, making it an extremely financeable acquisition. We have access to recent and nearby comparable sales and have already initiated conversations with lenders, all of which strongly support our asking price.

Preserving a Low Expense Ratio;
This portfolio also offers the ability to keep management overhead and operating expenses low. The concentrated density of the portfolio will create efficiencies in how the properties are managed and maintained. Additionally, 9 of the 10 properties possess the coveted 2A and 2B Tax Classification. Under this tax class, state law limits the increase in annual real estate tax assessed values to 8% per year and no more than 30% over 5 years, further promoting the longevity of a healthy expense ratio.

Geographical Diversification;
While every building in this portfolio is located within the neighborhood of Bedford Stuyvesant, the package is evenly distributed across multiple pockets, each pocket offering different levels of maturity and benefiting from a variety of different neighborhood catalysts. Madison is furthest to the west and benefits from neighboring Clinton Hill. Marcus Garvey, Putnam, and Malcolm X benefit from great local retail options as well as being surrounded by some of the best architecture in the borough. Macon and Halsey surround Saratoga Park, arguably the most charming and well design parks in Bedford-Stuyvesant, and all within a block of the J/Z subway stop. Finally, DeKalb, located on one of the most rapidly developing corridors in the area offering a number of new development projects and bringing a fresh look to central Bed-Stuy. By securing diversification across the neighborhood, an investor will be positioned to benefit from the continued growth of Bedford-Stuyvesant as a whole, while avoiding being over-exposed to any particular pocket.

Overview

Building Type:Apartment Buildings
Location:10 well positioned walk-up buildings across Bedford-Stuyvesant.
Lot Sq Ft:26,242
Units:89
Residential Units:88
Commercial Units:1
Building Sq Ft:67,733

Documents

Contact

For further information or inspection, please contact Exclusive Agents:

DJ Johnston
Director
(718) 307 6515
dj.johnston@cushwake.com

William Cheng
Director
(718) 606 7037
william.cheng@cushwake.com

Bryan Kirk
Associate
(718) 307 6516
bryan.kirk@cushwake.com

Joshua Sabzevari
Associate
(718) 307 6521
joshua.sabzevari@cushwake.com

George Bukawyn
Associate
(718) 606-7073
George.Bukawyn@cushwake.com


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Property Map


Aerial View


The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. All zoning, buildable footages and uses must be independently verified. Vacancy factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of this investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket, and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME, AND ALL OTHER INFORMATION HEREIN.