Lefrak has divested four rent-stabilised multi-family properties in South Brooklyn for US$38 million. As Commercial Observer has learned, the developer sold the more than 300 units of its so-called Parkway Portfolio in the Brooklyn neighbourhoods of Bensonhurst and Midwood to Avi Singer's HF NYC. This was confirmed by sources familiar with the deal.
J.P. Morgan Chase provided HF NYC with an acquisition loan of US$24.8 million for the purchase of the properties, located at 8301 and 7705 Bay Parkway in Bensonhurst, and 1201 and 1640 Ocean Parkway in Midwood. This was announced by Meridian Capital Group, which brokered the financing. Meridian Capital Group arranged the financing with a team led by Ben Himmel and Abe Hirsch.
Strategic Financing and Market Developments
Ben Himmel, Vice President, Debt Capital Markets, stated that they were pleased to have arranged this financing for HF NYC for a solid, well-located portfolio of rent-stabilised Brooklyn properties. He further explained that J.P. Morgan Chase had been very committed throughout the entire process, and his team had worked closely with all parties involved to deliver 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 deal, according to sources familiar with the transaction. Lefrak's sale of the four rent-stabilised assets took place shortly after New York City's Rent Guidelines Board froze rents for one- and two-year leases in rent-stabilised buildings for the first time the previous week.
Further Transactions
Last year, Lefrak previously sold another 166-unit market-rate multi-family property at 7410 and 7420 Ridge Boulevard in Bay Ridge, Brooklyn, to Hirsch for US$24.4 million, as Commercial Observer previously reported.
- —Transaction: Sale of four rent-stabilised multi-family properties in Brooklyn.
- —Buyer: Avi Singer's HF NYC.
- —Seller: Lefrak.
- —Financing: J.P. Morgan Chase provided a loan of US$24.8 million, brokered by Meridian Capital Group.
