(To read more on the multifamily market, click here.)

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NEW YORK CITY-A multifamily portfolio has traded in an all-cashtransaction for $118 million. A joint venture of BronsteinProperties LLC and JP Morgan Asset Management bought the BassukPortfolio to gain 943 units in Brooklyn and Queens.

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"This portfolio was built up by my grandfather over many yearsand passed along to his five sons," says Richard Bassuk, presidentof the Singer and Bassuk Organization. "Until now we neverconsidered selling the properties, but the dynamics of the currentmarket made the deal very attractive."

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The portfolio traded at a cap rate of 5%. The 14 properties inthe portfolio include five buildings in Brooklyn totaling 240 unitsor 271,000 sf, and nine buildings in Queens totaling 703 units or570,000 sf. The Brooklyn properties are in Brooklyn Heights, BayRidge and Midwood, while the Queens buildings are in Sunnyside,Jackson Heights, Richmond Hill and Woodhaven.

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"Selling was never before considered an option, but in thecurrent market where ownership of residential properties istransferring at extremely low cap rates and high gross rentmultiples, a sale became viable," said Massey Knakal partner BrianLeary. He tells GlobeSt.com, the frenzied market, low cap rate andincreasing cost to operate a portfolio of this size were allfactors behind putting it on the market.

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Massey Knakal's Leary, Brian Sarath, Robert Knakal and PaulMassey were the portfolio's exclusive brokers. Requests for commentwere not returned by deadline.

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This sale marks the third multifamily portfolio sale in New YorkCity this week. On Wednesday a 1,416-unit portfolio in the Bronxsold for $136 million. As GlobeSt.comreported the five-building portfolio was purchased by joint venturepartners Taconic Investment Partners and ING Clarion Partners. OnTuesday London-based Dawnay,Day Group made its first foray into this real estate marketwith the $225-million purchase of 48 buildings in East Harlem andthe East Village. The purchase includes 58 retail properties and1,141 residential units.

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"Investors for this type of product are competativley buying inthe New York City market and there is clearly a lack of product tomeet the demand. This has sparked a great deal of acivity in areassurrounding Manhattan," Leary tells GlobeSt.com. "Institutionalpurchasers are generally looking for large quantities of units andowners that are capable of aggregating multiple buildings to sellare seeing a large premium on a sale. It seems the bigger theportfolio the larger the demand in today's market."

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