According to information from Commercial Observer, Lefrak sold four rent-stabilised multi-family buildings in South Brooklyn for $38 million. The developer divested over 300 units from its so-called Parkway Portfolio in the Brooklyn neighbourhoods of Bensonhurst and Midwood. The buyer is HF NYC, a company owned by Avi Singer, sources familiar with the transaction stated.
J.P. Morgan Chase provided an acquisition loan of $24.8 million for the purchase of the properties, which are located at 8301 and 7705 Bay Parkway in Bensonhurst, and 1201 and 1640 Ocean Parkway in Midwood. Meridian Capital Group, which brokered the financing, arranged it with a team led by Ben Himmel and Abe Hirsch. Newmark represented Lefrak in the sale with a team spearheaded by Dan O’Brien and Adam Spies.
Ben Himmel, Vice President of Debt Capital Markets, stated: “We were pleased to arrange this financing for HF NYC for a strong, well-located portfolio of rent-stabilised Brooklyn assets.” He added that J.P. Morgan Chase had been highly engaged throughout the process and that his team worked closely with all parties to find a solution that met the sponsor's objectives and supported the portfolio's long-term stability.
Gary Barnett, Chairman and Co-CEO of Extell Development, is a personal investor in this transaction, according to sources. Lefrak's sale of the four rent-regulated properties occurred shortly after New York City's Rent Guidelines Board decided the previous week to freeze rents for one- and two-year leases in rent-stabilised buildings for the first time.
Furthermore, Lefrak had already sold a 166-unit market-rate multi-family building at 7410 and 7420 Ridge Boulevard in Bay Ridge, Brooklyn, to Avi Singer last year. The purchase price amounted to $24.4 million, as previously reported by Commercial Observer. Requests for comment from Lefrak, HF NYC, J.P. Morgan, and Barnett initially remained unanswered.
