U
DR, one of the country's largest apartment REITs, has sold a Williamsburg rental building it owned for six years at a loss. The company sold Leonard Point, located at 395 Leonard Street, to Urban Pacific Investors for $127.5 million, according to property records filed with the city. This sale price is slightly lower than the roughly $132 million UDR paid in 2019 when it acquired the property from Rabsky Group.

    The deal marks a mixed sign for Brooklyn's investment sales market, which reached nearly $8 billion in 2024. While transaction activity picked up last year, high interest rates are still impacting prices. Urban Pacific's purchase is its seventh acquisition in the New York metro market and reflects the company's focus on well-located communities with proximity to Manhattan.

    The sale price of $127.5 million works out to about $678,000 per unit for the 188-unit building, which Rabsky developed in 2014. Brooklyn investment sales increased 51 percent last year versus 2023, and the number of transactions rose 12 percent. TerraCRG CEO Dan Marks expects this trend to continue into 2025, leading to higher sales volume numbers.

    UDR has been a buyer as recently as early last year, when it took over a distressed apartment building in Downtown Oakland. The company declined to comment on the sale of Leonard Point.