Dixon is no longer buying only houses in Brooklyn but has moved into large apartment buildings in a huge way, snapping up at least $40,000,000 worth of commercial property in Brooklyn in one month, according to public records and sources.
In June, working with partner Excelsior Equities, Dixon acquired 442-446 Decatur Street, pictured above, 263-265 Linden Street, 255-261 Linden Street, 770 St. Marks Avenue, 637 St. Marks Avenue, 24-30 Rogers Avenue, and 75 MacDonough Street, all in Bed Stuy, Bushwick and Crown Heights.
The change in strategy allows Dixon to rapidly increase the scale of its operations, to buy at a bigger discount, and will also give the company cash flow to service debt, a source who preferred to remain anonymous told us. “If they buy bigger properties, it gives them more scale and they can get a discount due to rent stabilization,” he said.
One of the sellers of the commercial properties in Crown Heights, John Weinberger, is in the final stages of selling all his Brooklyn properties, a total of more than 3,000 units, another source told us.
Dixon and partner Excelsior Equities acquired 442-446 Decatur Street for $5,900,000; 263-265 Linden Street for $6,750,000; 255-261 Linden Street for $6,750,000; and 75 MacDonough Street for $3,150,000. The Crown Heights properties at 770 St. Marks Avenue, 637 St. Marks Avenue, and 24-30 Rogers Avenue traded for $25,000,000, according to our sources and The Real Deal. That sale has not yet hit public records.
“We are very excited about Brooklyn, and our previous experience in Hudson County has found that a combination of prewar rent stabilized apartment blocks and one-to-four-family properties works really well,” Managing Director and Chief Executive Officer for Dixon Advisory USA Alan Dixon told us. “In Hudson Country we have 21 apartment buildings, primarily in West New York and Union City. In those buildings, we are partnered with Urban American and Excelsior Equities, who do the management on the properties.”