Three investment management firms have teamed up through a joint venture to acquire a recently completed residential building, 240 Willoughby Street in Fort Greene, Brooklyn, for $209 million. The buyer group includes Fetner Properties, MCB Real Estate and Farallon Capital Management, L.L.C.
To help fund the purchase, M&T Realty Capital Corp. is providing a $141.5 million senior loan, with JLL brokering the deal.
The 463-unit property, with 147 designated as affordable, reportedly was scheduled to finish in the winter of 2024. Ahead of the announced acquisition, Fetner said that it started marketing leasing during Memorial Day weekend. So far, the building is 25 percent occupied. The Rabsky Group was the primary developer of the site.
Part of 240 Willoughby Street's appeal is the more than 30,000 square feet of amenities, which include a yoga studio, a business center, a fitness center, sports simulator rooms, game rooms and a children's playroom. Also, multiple private terraces are located at the property, with the Fort Greene Park located nearby.
The apartments themselves consist of studios, as well as one and two-bedroom units. They feature in-unit washers and dryers, floor-to-ceiling windows and Bluetooth sound systems.
"This rapid lease-up shows how much the neighborhood has embraced 240 Willoughby," Hal Fetner, president and CEO of Fetner, said in a statement.
"We're very bullish on New York City, and this acquisition is another step in our continued commitment to provide quality affordable and market rate housing to the city."
Over the past 24 months alone, Fetner said it has developed or acquired more than 1,500 homes in not only Brooklyn — but in other NYC boroughs like Manhattan and Queens too.
David Bramble, managing partner at MCB Real Estate, referred to Fort Greene as one of Brooklyn's "high-growth submarkets."
The first quarter for NYC's rental market represented a strong start to the year. A report from Realtor.com found that the median asking rent was $3,397, up 5.6 percent year-over-year. Brooklyn, while outpaced by Manhattan's 5.5 percent growth, enjoyed a strong start to the year with its five percent gain.
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