A partnership between the Moinian Group and Bushburg Properties has sold a 467-unit apartment complex at 123 Linden Street for $330M, PincusCo reported, based on a filing by Moinian on the Tel Aviv Stock Exchange.
The deal translates to $700Kper unit. A market-rate studio in the building list for $2,750 per month, while a three-bedroom unit is fetching monthly rents of more than $5,400. Amenities in the complex include a fitness center, a spa and a rooftop pool.
The buyer was not disclosed.
Bushberg Properties purchased the site, which was occupied by a former nursing home, for $19M in 2016. Moinian acquired a 50% stake in 2017, loaning the project $160M and increasing its investment by about $20M.
Moinian financed the construction of the campus at 123 Linden with a $160M loan from Moinian Capital Partners, its lending arm. The partners secured a $170M refi in 2021 financed by an AIG subsidiary; the Bank of China replaced it with a $223M loan in 2022.
Bushburg has amassed $2.5B of assets under management and a portfolio of 30 properties across three states encompassing more than 7M SF by pursuing a strategy of finding value in “overlooked and underappreciated” properties, many of them located on its home turf in Brooklyn.
Investment sales in Brooklyn cratered in Q1 2023, with the dollar volume of investment sales in the borough plunging 47% compared to Q4 2022. The drop is 49% in a YOY comparison, according to data from TerraCRG.
Transaction volume encompassed $1.05B in deals in Brooklyn in Q1 2023, compared to a $2.07B haul in Q1 2022. Some of the biggest drops involved multifamily transactions—first quarter investment sales in the borough totaled $490M, a 73% drop from Q4 2022, the report said.
Industrial transactions also dropped steeply in Brooklyn in the first quarter as leasing in the sector slowed. The transaction volume declined 65% year-over-year, dropping to about $81 million.
Investment sales for retail buildings declined by 43% in Brooklyn in Q1 2023 in a YOY comparison, about $80M, and development site sales declined by $25M.
Office sales in Brooklyn managed to record a slight increase over Q4, the only sector in the borough to see a gain. In a YOY comparison, however, office sales dropped 85%.
The largest investment sale in Q1 occurred in Brooklyn Heights, where Rockrose Development acquired a multifamily campus at 180 Remsen Street from St. Francis College for $160M—the only deal worth more than $50M in Brooklyn in the first quarter, the report said.