Schuckman Realty Brokers Sell 8-Unit Multifamily Property In Bedford-Stuyvesant For $5.05M

The sale of a multifamily property located at 558 Lafayette Ave. in the Bedford-Stuyvesant neighborhood of Brooklyn has been announced by Schuckman Realty. The property was sold for a price of $5,050,000. It consists of eight oversized residential units with a total area of 9,055 square feet.

Summary of Transaction Details

• Property Type: Multifamily
• Sale Price: $5,050,000
• Units: 8
• Price per Unit: $631,250
• Total Square Feet: 9,055
• Price per Square Foot: $557

The property, developed in 2002, is currently in year 17 of a 25-year 421A Tax abatement, making the building 100% Rent Stabilized for the remaining abatement period. The unit mix includes four 2-bedroom/1-bathroom units, two 4-bedroom/2-bathroom duplex units, and two 3-bedroom/2-bathroom penthouse units. At the time of sale, the in-place rents had been discounted from the DHCR Legal rents due to concessions/preferential rents offered during the Covid pandemic. The purchaser, a 1031 buyer, anticipated that the units would re-lease at rates closer to their pre-Covid/legal rents upon natural turnover of existing tenants.

The sale price of $5,050,000 ($558 per square foot) translates to a day one cap rate of 4.31% and a pro-forma cap rate of 5.69% (both rates include the unabated taxes and the net present value of the remaining term of the abatement at a 5% discount rate). For more information or to discuss the underwriting considerations for tax-abated properties, interested parties can reach out to Joseph Rosenfeld or Baruch Edelkopf of Schuckman Realty.