Forest City Realty Trust has sold 461 Dean, a 363-unit partially affordable community in Brooklyn. The buyer, international real estate manager Principal Global Investors, acquired the asset for $156 million, resulting in an approximate cap rate of 4.5 percent. Forest City broke ground on the development in late 2012, and the property opened its first phase during the third quarter of 2016.
Located at the corner of Dean Street and Flatbush Avenue, the building sits next door to the Barclays Center in the Prospect Heights submarket. Rising 32 stories—the world’s tallest modular building, according to Architectural Digest—the SHoP Architects-designed tower is positioned between the Bergen Street and Atlantic Avenue/Barclays Center subway stations, enabling convenient access around the city.
Mix of luxury and affordable units
The community offers residents a mix of studio, one- and two-bedroom apartments, ranging in size from 450 to 920 square feet. The building contains 50 affordable units. Amenities include a sky lounge, fitness center, game room, laundry facilities and a children’s playroom.
“We’re pleased with this transaction, which achieved attractive pricing for this recently stabilized asset, and enables the company to generate significant liquidity to further our deleveraging efforts and other strategic uses,” said David LaRue, Forest City’s president & CEO, in a prepared statement. “The economics of the sale also reflect the continued health of the Brooklyn multifamily rental market, and the continued value-creation opportunity in the market.”
Image via Google Street View