Avanath Buys Downtown Brooklyn Apartments for $100M
Brodsky Organization sells 250-unit rent-stabilized tower on Dekalb Ave.
California-based Avanath Capital Management is acquiring a 250-unit apartment tower at the City Point Center in Downtown Brooklyn for $100M.
The purchase price is roughly what the seller, the Brodsky Organization, paid for the 23-story building at 7 DeKalb Ave. when it bought the property from developers Acadia Realty Trust, Washington Square Partners and BFC Partners in 2017.
Rent stabilization covers about 80% of the units in the building, part of the 1.8M SF City Point development.
Newmark brokered the sale of the property. Avanath is taking over a $58M loan held by Wells Fargo, a mortgage that comes due in 2027.
This is the second Brooklyn acquisition for Irvine-based Avanath in recent months. In May, the company acquired two multifamily towers in the borough for $315M.
The two buildings, located at 38 6th Ave. and 535 Carlton Ave. in proximity to the Barclays Center arena in Brooklyn, encompass 601 apartments and 43K SF of ground-floor retail space, as well as 83K SF of parking space.
About a third of the space at the properties next to the arena are reserved for residents with incomes between 40% and 100% of the area’s median income.
The two buildings were constructed in 2017 as part of the Pacific Park New York Development initiative, which upon full completion will host 13 residential and mixed-use buildings encompassing 7.3M Sf of residential, commercial and retail space.
On Atlantic Ave., the Rocklyn Asset Corporation, a property management firm affiliated with the Diocese of Brooklyn recently announced it is planning to build a 14-story apartment building in East New York on church-owned property.
The 362K SF multifamily would encompass 353 units at 2797 Atlantic Avenue on a parcel owned by St. Malachy’s, a Roman Catholic church. An unspecified number of affordable housing units will be included in the project.
The church lot is located in a growth corridor designated by NYC in 2016 to encourage mixed-income housing and commercial development along major arteries in East New York.
The lot formerly housed St. Malachy’s RC Church, which was demolished in 2011. A two-story building housing the St. Malachy’s Child Development Center is located on the site, which borders on Hendrix St. The site is across the street from a former dairy factory.