BALTIMORE--(BUSINESS WIRE)--A joint venture owned by Alex. Brown Realty, Inc. (ABR), Largo Investments, JDS Development Group and Property Markets Group has sold 50 North 1st Street to 50 North One LLC (Kushner Companies & Cornell Realty Management LLC) for $33.5 million.
Located in the Williamsburg neighborhood of Brooklyn, New York, 50 North 1st Street is a 7-story building containing 46 luxury apartment units. The project provides a mix of one- and two-bedroom apartments as well as penthouse units with views of Manhattan. At closing, the project was 100% leased.
Construction of 50 North 1st Street commenced in July 2007, but was suspended in June 2009 after both of the project’s construction lenders were taken over by the FDIC. The FDIC subsequently sold the loans to Valley National Bank and East West Bank. The joint venture gained control of the development in August 2011 after Largo Investments successfully negotiated a note purchase with the new lenders, as well as an agreement to acquire the fee simple interest from the original developer. The joint venture restarted construction in the fall of 2011 and completed the project in June 2013. Following construction, the joint venture received several unsolicited offers from potential buyers.
“50 North 1st Street was a complicated transaction, but a terrific investment opportunity,” commented Nick Werner, a principal at Largo. “Our business plan was to create a quality multifamily project in a desirable location. We successfully implemented that plan and were able to take advantage of capital market enthusiasm for the sector and sell at an attractive price after a brief holding period.” Werner notes that the project was further enhanced by a 421a tax abatement, which froze property taxes during construction and limits tax increases over the next 25 years.
“Our joint venture partners have extensive experience owning, managing and developing real estate in the five boroughs,” commented John Prugh, ABR’s President and CEO. “That experience was invaluable in all phases of this project. We are extremely pleased with the success of this investment and the excellent return this sale has generated for our investors.”
Alex. Brown Realty, Inc. (ABR) is a privately-owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Largo Investments (“Largo”) is a private real estate investment and development firm based in New York City, run by Nissim Ben-Nun and Nicholas Werner. Largo’s core business is the acquisition, development and operation of multifamily real estate in the New York metropolitan area. In addition, Largo provides direct construction management services for its projects through its wholly owned subsidiary Sunrise Construction.
JDS Development Group is a real estate development company formed by Michael Stern for the purchase and development of luxury residential real estate. JDS and its team of industry leading professionals has a wide range of experience and unique expertise in the fields of design and construction, hands on project management, results driven sales and marketing, and real estate related financing stemming from its development and construction of over 4 million sq. ft. of property in various capacities in New York and Miami over the last several years.
Property Markets Group is a New York-based real estate acquisition and development firm established in 1991. It currently owns over $3B in assets across the United States.