In New York City today, there’s a growing movement of owners looking to sell large, prewar multifamily assets. These owners have typically owned the building for over 30+ years and are hoping to take the next step in their personal or investment lives. Recent rent legislation has only increased this desire. 

In New York City, it’s always challenging to close the sale of a multifamily portfolio. It’s especially challenging in 2019 when the properties are spread across 2 boroughs. The New York Multifamily team of M&M closed such a portfolio of assets in Brooklyn and Queens — a $112,000,000 portfolio of 6 properties representing 423 units and 426,749 square feet. The portfolio ultimately sold to a single buyer. Here’s a look at how this deal came together, and the challenges faced on the path to closing.

Every NYC multifamily portfolio transaction comes with its own unique set of challenges. In some cases, multiple partners own a portfolio, which can make it difficult to gain alignment among the various interests. In others, the buildings are located in separate neighborhoods, making it difficult to find a single buyer. And further, properties within a long-term portfolio often have deferred maintenance, violations or other non-conforming uses, that can impede a sale.