GO Residential REIT has completed a previously announced acquisition, which includes a majority stake in a multi-family property in Crown Heights, Brooklyn. The real estate investment trust (REIT), operating as LLC GO 409, acquired an approximately 81 per cent majority interest in the 186-unit residential building at 409 Eastern Parkway for 109 million dollars. This was revealed by land registry records published on Monday. GO acquired the stake from a consortium of sellers comprising FBE Limited, Adam America Real Estate, and Zev Marmurstein. Adam America will retain a 19 per cent interest in the property.
The deal, announced in March, closed on 1 July and was recorded in official documents on 20 July. The property, which spans 197,395 square feet of developed area, features three ground-floor retail units. PincusCo was the first to report on the sale. Current tenants in the eleven-storey building include the restaurant Cornbread Brooklyn and the physical therapy clinic JAG Physical Therapy.
The property enjoys a tax exemption status under the now-expired 421-a programme, as also noted by PincusCo. This status became effective in 2020 and is expected to end in 2056. Max Kaufman, Chief Operating Officer of GO, signed the agreement for the buyer. Yehoshua Fruchthandler, managing member at FBE Limited, Florin Radu, Chief Commercial Officer at Adam America, and Marmurstein signed the agreement for the sellers. A CBRE team consisting of Doug Middleton, Ariel Aber, Daniel Kaplan, and Pierre Hills represented the sellers.
Strategic Portfolio Expansion
The buyer has been active in acquiring urban residential properties this year. Earlier this year, GO acquired 350 West 43rd Street, also known as Ivy Tower, from Friedman Management. Additionally, GO purchased 411 West 35th Street and 444 West 35th Street from Maddd Equities, as reported by Commercial Observer in February. The total investment for these transactions amounted to 380.5 million dollars. Furthermore, there is a contract to acquire the 209-unit residential component at 7 Dey Street in the Financial District from SL Green Realty.
Following this acquisition in Crown Heights, the REIT’s portfolio will encompass 2,731 residential units, representing a 7 per cent increase since the end of June. Joshua Gotlib, CEO of GO, stated that 409 Eastern Parkway complements the portfolio of differentiated, well-appointed luxury high-rise properties in New York City. Gotlib emphasised that as Brooklyn, with over 2.7 million residents, continues to expand its commercial and residential offerings, he anticipates additional growth opportunities for the company.
Parties Involved
- —Buyer: GO Residential REIT (via LLC GO 409)
- —Sellers: FBE Limited, Adam America Real Estate, Zev Marmurstein
- —Buyer Representative (contract signing): Max Kaufman (GO Residential REIT)
- —Seller Representatives (contract signing): Yehoshua Fruchthandler (FBE Limited), Florin Radu (Adam America), Zev Marmurstein
- —Broker (Sellers): CBRE (Doug Middleton, Ariel Aber, Daniel Kaplan, Pierre Hills)
