The Midwood Portfolio
550 East 21st Street, 850 East 17th Street, 855 East 19th Street, 3111 Aurelia Court
Midwood
Closed in 2022 at $41,880,000
TerraCRG was retained to exclusively market four elevator multifamily buildings in Midwood – a unique portfolio of significant size and scale comprising of 246 fully rent-stabilized units. The total unit mix across the portfolio included 44 studios, 77 1-bedroom units, 100 2-bedroom units, and 25 3-bedroom units – all located within a 1.5-mile radius surrounding Brooklyn College and the popular Triangle Junction Shopping Center. Partners Ofer Cohen, Matt Cosentino, and Daniel Lebor exclusively represented the seller, alongside TerraCRG Associates, Ben Robbins and Isaiah Thomas.
About this Property
550 East 21st Street 54 Units & 28 Parking Spaces, located just north of Ditmas Avenue
850 East 17th Street 35 Units, located less than two blocks from the Q train (Avenue H stop)
855 East 19th Street 60 Units, located next to Ocean Avenue & Brooklyn College
3111 Aurelia Court 97 Units & 30 Parking Spaces, located adjacent to the Triangle Junction Shopping Center
Gross SF 251,762
Portfolio Price/Unit $170,243
Portfolio Price/SF $166
Total Units 246
Total Parking Spaces 58
CHALLENGES
- Multiple generations of ownership
- Property had never sold before
- Portfolio of significant size and scale
- 100% rent stabilized following the Rent Laws 2019 Update
SEALING THE DEAL
Built in the 1940s, the buildings had been kept within the Kraus & Livingston family ownership for over 70 years. For the first time since then they were being offered for sale, providing a once in a lifetime investment opportunity for potential buyers. Although the properties were physically maintained and revenue-generating, TerraCRG’s team saw several potential growth areas, such as existing preferential rents and adjoining vacant apartments, that the sellers could utilize to increase the existing income generated, and ultimately maximize the value of this unique portfolio.
As such, TerraCRG’s team was confident that the buildings were substantially worth more as a portfolio and diligently worked with the complex ownership group to ensure that they would be willing to sell the four buildings under a single transaction instead of them being sold individually. Purchased by a large owner of rent-stabilized assets, TerraCRG was able to achieve a sub 5% cap rate on the sale, which is a significant premium on the typical rent stabilized transactions within Brooklyn. Conveniently located near retail corridors and nearby transportation, this portfolio is a testament to the resilience of the Investment Sales market in Brooklyn. TerraCRG is proud of our specialized approach as we continue to help investors successfully seek large assets, like this one, throughout the borough.