Akelius Shells Out $56M for Historic Multifamily Community
- May 18, 2016
New York—Marcus & Millichap announced the sale of Mohawk Apartments, an 86-unit multifamily community in Brooklyn, for $56.5 million, which translates into roughly $657,000 per unit. According to The Real Deal, the buyer is Swedish real estate group Akelius. Marcus & Millichap’s Institutional Property Advisors (IPA) Division mediated the transaction.
The six buildings, which are located at 369-379 Washington Ave. and 76-84 Saint James Place in Brooklyn’s historic Clinton Hill neighborhood, changed ownership for the first time in 30 years.
“Clinton Hill is one the most charming submarkets in New York City. There was substantial competition for this property, resulting in all-cash transaction at an above market rent multiple,” said Shaun Riney of Marcus & Millichap.
Mohawk Apartments offers more than 91,000 square feet of rentable space and includes one-, two- and three-bedroom apartments, as well as a commercial unit. The buildings were completed in 1905 and renovated in the 1980s with federal historic preservation tax credits, offering great potential for further improvement and upgrades.
“When Mohawk Apartments was rehabilitated in the 1980s, the interior was rebuilt with large loft layouts, which are conducive to a long-term condominium conversion program and present further opportunity for the new owner to unlock additional value,” said Joe Koicim of IPA.
Last year, Akelius bought several assets in Brooklyn in a galloping acquisition campaign resulting in an extended residential portfolio of more than 10 properties.
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