K
KR has sold 80 Dekalb, a 365-unit rental tower in Downtown Brooklyn, to Atlas Capital for $202.5 million. The sale is one of the borough's largest this year and marks a significant investment by Atlas in New York City. JLL brokered the deal.

    The sale price represents a modest premium over KKR's purchase price two years ago, when it partnered with Dalan Management to acquire the property for $190 million. Despite rising interest rates, valuations have slipped, making this sale a notable achievement.

    This transaction is one of several signs of life in the investment sales market, which went dormant last year. Institutional capital is driving deals, and demand for free-market buildings remains high, according to Shimon Shkury of Ariel Property Advisors.

    KKR's decision to sell was not driven by debt concerns, but rather a desire to return capital to investors at an attractive price point. Atlas Capital, known for opportunistic and value-add deals, saw the long-term, fixed-rate loan on 80 Dekalb as an opportunity to invest in a prime property.

    This sale follows KKR's recent purchase of 540 Fulton Street, another rental tower in Downtown Brooklyn, for $240 million. The firm has been active in the New York City market, and this deal underscores its commitment to investing in the city.