Last month the Bassuk family sold a portfolio of 14 residential properties in Brooklyn and Queens for $118 million to a joint venture between Bronstein Properties and JP Morgan Asset Management. The group of five Brooklyn buildings, which included 136 Hicks Street (above) as well as rentals in Bay Ridge and Midwood, had been marketed as a group for $35 million. Until now we never considered selling the properties, but the dynamics of the current market made the deal very attractive, said Richard Bassuk, one of the many heirs to the portfolio. Indeed. The entire portfolio consisted of 943 apartments for a total of 841,000 square feet. The cap rate (basically the projected annual income divided by price) was about 5 percent. Hasn’t JP Morgan ever heard of Treasury bonds!
943-Unit Multifamily Portfolio Trades for $118M [Globe Street]
Photo by Scott Bintner for Property Shark