R
elated Companies is taking a significant loss on its Prospect Heights rental portfolio, with the sale of four Brooklyn buildings to ABJ Properties for $16 million. This represents a steep decline from the $30 million Related paid to purchase the 48-unit portfolio in 2016, which was financed with a $17 million loan from Signature Bank. The buyer, Great Neck-based ABJ Properties, is run by Benjamin Soleimani.

    The sale may be attributed to increased rent regulations, which have made it more difficult for landlords to deregulate units and raise rents. A portion of the units in the portfolio are occupied by rent-stabilized tenants, who have been protected from significant rent increases since 2019. Related has filed multiple lawsuits against tenants across the portfolio for nonpayment of rent.

    The sale comes as Related is also involved in a major development project in Brooklyn's Pacific Park neighborhood, where it is partnering with Fortress Investment Group and the U.S. Immigration Fund to complete the megaproject after its previous partners foreclosed on Greenland USA. ABJ Properties has been relatively quiet in recent years, but did purchase seven walk-up buildings in Manhattan for $61 million in 2022 from Steve Croman.