A recently constructed 23-floor rental apartment building, located in downtown Brooklyn at 7 Dekalb Avenue as part of City Point, a $1 billion mega development, has been acquired by the Brodsky Organization.
According to Crain’s, “The family-owned real estate investment firm purchased the building in a deal that valued it at around $100 million, a source said. The tower was developed by a partnership between Acadia Realty Trust, Washington Square Partners and BFC Partners and includes 80% affordable units. In the deal Acadia and Washington Square Partners sold their majority stake to Brodsky. BFC Partners, which Acadia and Washington Square Partners had tapped to lead the construction, will retain its minority share.
Contrary statements came from sources. BFC Partners’ spokesman said that BFC is maintaining ownership of 7 Dekalb Avenue, while Crain’s insider source said that complete ownership is being acquired by Brodsky. Crain’s was unable to immediately reach any other parties involved in the deal for their comments.
The building was marketed to potential bidders by CBRE investment sales team led by Darcy Stacom on behalf of BFC, Acadia and Washington Square Partners. For single residential properties, this sale would be one of the biggest so far this year.
Crain’s reports, “The purchase gives Brodsky control of its second apartment tower at the City Point site. At the beginning of the 1.8 million-square-foot project’s development in 2012, Acadia and Washington Square Partners, which control the City Point development site in a long-term land lease from the city, selected Brodsky to develop a 48-story, 440-unit market-rate rental apartment called City Tower. That building is now complete and is managed by Brodsky. At that time, Acadia and Washington Square Partners selected BFC Partners to lead the construction and co-invest in 7 Dekalb Ave.”
At the residential development of the site, a giant retail mall remains owned and operated by Acadia and Washington Square Partners, despite several deals being made by them with other developers to construct and run the apartment towered on the site. Many popular tenants already call the development home, including the Dekalb Market food hall and the Alamo Drafthouse Cinema.
Still in progress is a third residential tower, which will also have a retail space on the ground floor. The tall, narrow rental tower is going to be built by Extell Development; a selection made by Acadia and Washington Square Partners to work on the project.
By Mark Snyder