TerraCRG, sold 181-182 Prospect Park West in the Park Slope neighborhood of Brooklyn, for $11, 700 million. Adam Hess and his team handled the transaction.
The attached buildings are located directly across from Prospect Park and consist of 34 units over ~15, 000 SF. The $11, 700, 000 purchase price equated to $780/SF, a 4.1% CAP rate, 18x gross rent multiplier and $344, 000/unit. This sale represents an unusual transfer of a significant number of residential units sitting directly on Prospect Park.
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The purchaser is an investor with several other assets across Manhattan and Brooklyn that is making a strong push into the Park Slope neighborhood. The seller is a long time Park Slope ownership group that is using the funds as part of a 1031 exchange.
As a result of limited inventory for housing this close to Prospect Park, condo pricing on the southern edge of Park Slope is approaching the $1, 500/ SF level, and the rental market for renovated units is edging into the $60/SF range.
In Park Slope, an area within which Adam Hess and his team handle over 30% of trades, the following portfolios have closed or are in contract:
704, 719-723 8th Avenue, Park Slope, 47 Units SOLD: $37, 000, 000
181-182 Prospect Park West, 34 Units, SOLD: $11, 700, 000
409-421 14th Street, 44 Units, IN CONTRACT: $17, 500, 000
“Trades in Park Slope have become rare as the appeal of the neighborhood is on the rise, ” says Adam Hess, Partner at TerraCRG. “This popular area of Brooklyn continues to be one of the strongest and most established sub-markets in New York City, yet there is still a shortage of supply to satisfy the demand for high-end rental units. It was extremely unusual for this many units to be on the market simultaneously, in such a prime park side location.”
