$29,000,000 Greenpoint Sale Sets Price-Per-Unit Record

$29,000,000 Greenpoint Sale Sets Price-Per-Unit Record 


When rent law reform was passed in the summer of 2019, rent-stabilized investments immediately became more complicated to multifamily owners. The demand for free-market units increased, and the sale of 105-115 Greenpoint Avenue is the perfect example of that shift in today’s real estate climate. During this deal, the New York Multifamily Team received more than 15 written offers and conducted about 20 property tours. 

Other area brokers had tried to sell this 52-unit building, but New York Multifamily was ultimately able to close the deal because of our access to a wide network of buyers and our marketing expertise. 

Our expert team closed on this Greenpoint building in late December 2019 for $29 million. 

The Seller’s Exit Strategy

The owner of 105-115 Greenpoint Ave. purchased the property in 2014. When the syndication bought the asset, their plan was to exit after renovations and appreciation. The owner spent time renovating the 50 free-market units in the building, and in 2019 they were ready to move on to the next investment. 

After working with two other brokers, the owner contacted the New York Multifamily team, who ultimately sold the building.

Overcoming Three Challenges 

Every sales transaction has its unique combination of challenges to be overcome and positives to be highlighted.  First, due to ongoing renovations during the sales process, building tours had to be performed thoughtfully and with a strategic plan.  Second, due to other brokers unsuccessfully handling this sale first, many potential buyers had to be re-engaged, and lead to see the opportunity with fresh eyes.  It is important to create a sense of urgency, and even more so in today’s market. Each “for sale” asset is competing with alternative investments available right now, so it’s important to have a broker that will take action. As we say internally “Brokerage is a Verb” and the buying community needs direction to determine where to invest their time.

The third challenge were the increases in real estate taxes.  As the city continues to raise revenue by increasing property taxes, brokers need to be adept at guiding and educating the underwriting of buyers to ensure the sale closes.  Our specialized team was able to navigate that when searching for the right buyer.

Foreign Equity to Brooklyn 

There is much talk in the market about “foreign buyers.”  The data shows that the largest amount of capital invested in the the NYC market comes from North America, (Canada leads the pack).  Engaging the vast Marcus & Millichap network, we were able to reach the right match, which was a collaboration between foreign equity and local operations. We were able to accurately underwrite the building with real expenses and show buyers rental comps to justify the upside in the property.

The buyer was a foreign equity group that had not been previously contacted.  Interestingly, none of the top five buyers had any holdings in Greenpoint, and all were from different areas. Some of the most competitive buyers today are being brought in from outside the local market.  We anticipate this will continue in the prime areas of Brooklyn due to its high possibility for rent growth.

Closing and Breaking Records 

The sale of 105-115 Greenpoint Avenue set a record for the highest price per unit paid for a walk-up apartment building in Greenpoint (approximately $557,000 per unit). 

As free market rents climb higher, we anticipate higher demand for Manhattan, and Outer-Borough, free-market properties. There are more renters looking for fewer available apartments. Interested in learning more about this deal or how we can help you enjoy maximum return on your investment in a multifamily property? Contact us today or call 212.430.5114.


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