Lee & Associates NYC recently closed a successful deal, selling 75 Pierrepont St. in Brooklyn Heights for $6.8 million. The property is a six-story residential building with 25,800 square feet and is fully occupied with 37 rent-stabilized units.
Represented by Thomas Gammino and Patrick Donahue from Lee NYC, both the buyer and seller were satisfied with the transaction at a cap rate of 6.2%. This sale comes as a surprise given that since the Housing Stability and Tenant Protection Act was passed in 2019, it has been challenging to find buyers interested in fully rent-stabilized buildings.
According to Lee NYC, investing in rent-stabilized properties has become less profitable due to New York State regulating rents while New York City sets tax rates. However, this sale proves that there is still hope among investors that one day the legislature will realize that building more housing units rather than regulating them is key to solving the housing crisis.
In summary:
Lee & Associates NYC successfully sold an occupied residential building at 75 Pierrepont St., located in Brooklyn Heights for $6.8 million at a cap rate of %6.%2 Represented by Thomas Gammino and Patrick Donahue from Lee NYC on behalf of both buyer and seller; this six-story property boasts over twenty-five thousand square feet featuring thirty-seven stabilized rental units.
Despite recent legislation making it difficult for buyers interested solely into stabilized buildings; this particular purchase demonstrates optimism within investment circles regarding future legislative changes which may better address current issues surrounding affordable housing options throughout New York City’s five boroughs.
