Brooklyn Multifamily Sale Shatters Records
At a price of $296 per square foot, the sale of 632 Ocean Parkway has set a high mark for the Kensington section of Brooklyn.
New York—At a price of $296 per square foot, the sale of 632 Ocean Parkway has set a high mark for the Kensington section of Brooklyn. Arranged by Manhattan-based GFI Realty Services Inc., the transaction saw senior director of investment sales Erik Yankelovich representing both buyer and seller.
The sale for $6.4 million netted the new owner the four-story walkup with 31 residential units and 28,000 square feet of available air rights. “The timing was excellent,” Yankelovich tells MHN. “The sellers capitalized on the strength of the market and were able to transition their real estate capital to a less management-intensive asset class.”
Kensington is a residential neighborhood located between Borough Park and East Flatbush, within walking distance of Prospect Park. It traditionally has been characterized by a limited number of trades due to its comparative stability.
“It has been a very stable area that has only gotten stronger with [more easily] managed buildings,” Yankelovich reports. “There is tremendous demand from various types of investors, from the institutional level to the local families. And the typical buyer is in for the long term.”
The apartment building is located near the B, F and Q trains, and in proximity to several local retail corridors. In addition, the thriving neighborhood encircling the property is home to several schools and bus lines.
“The buyer was looking to add to his area portfolio, and capitalized on the opportunity to acquire this pre-war building,” Yankelovich said. “A hands-on operator, he intends to make various improvements to the property, and to maintain it as a rental building for the long term.”
Meantime, having ushered in a new generation of management in recent years, the family firm selling the building is interested in redirecting its real estate capital into the aforementioned less management-intensive asset class, he said.
“GFI was given a carve-out for an investor we thought would be ideal, and he ultimately proved to offer the seller the best terms.”