137 Bayard Street, a 27-unit rental building in Greenpoint, Brooklyn, has been successfully sold for $17,800,000. This multifamily property, developed in 2018, is equipped with an elevator and benefits from a 421a tax abatement, which is set to expire in 2031. With the tax abatement, the building is currently 100% rent-stabilized and does not offer preferential rents. Upon expiration of the abatement, the property can be converted to market-rate upon tenant turnover. The building was fully occupied at the time of the sale.

Summary of transaction details:

• Property Type: Multifamily
• Sale Price: $17,800,000
• Units: 27
• Price Per Unit (PPU): $659,259
• Square Footage (SF): 19,674
• Price Per Square Foot (PPSF): $904
• Market: Greenpoint, Brooklyn

The buyer of 137 Bayard Street is Sidharth Lakhani, while the seller is Sol Feder. Representing the buyer are Pavan Uttam and Manu Pohani from UP Real Estate Advisors. On the seller's side, DJ Johnston, Bryan Kirk, and Robert Moore from B6 Real Estate Advisors facilitated the transaction.

The sales price of $17,800,000 reflects a cap rate of 4.5% on the unabated Net Operating Income (NOI), along with a 5.5% discount rate applied to the tax savings over the remaining term of the abatement. The price per square foot for this property is $895, and the price per unit is $650,000.

The developer and architect of 137 Bayard Street deserve recognition for creating an efficient building with minimal loss factor, maximizing every square foot to generate income. The property features a basement lounge and gym, as well as an indoor/outdoor common room on the top floor, providing functional and private spaces for residents. The rear yard offers outdoor parking, while the roof offers both private and common outdoor areas.

Note from @B6realestate: B6 Real Estate Advisors specializes in marketing and valuing tax-abated multifamily buildings in NYC. If you own a property with a tax abatement, feel free to contact them for insights on valuation and maximizing its appeal to the market.

Contact information for DJ Johnston:
Email: [email protected]
Phone: 914-584-7422