A&E Real Estate has announced the finalized acquisition of 14 multifamily buildings in Brooklyn’s Gravesend and Sheepshead Bay neighborhoods. Encompassing 1,212 apartments, 306 parking spaces, and five commercial units, A&E acquired the portfolio from The LeFrak Organization for $248.7 million.
Marking the sixth in a series of major New York City multifamily acquisitions, A&E has acquired 3,284 apartments across 43 buildings in Brooklyn, Manhattan, and Queens over the last 12 months. Since January 2022, A&E has acquired 1080 Amsterdam in Morningside Heights; 140 and 160 Riverside Boulevard on the Upper West Side; Cunningham Heights in Queens Village; and 92-40 Queens Boulevard in Rego Park.
Douglas Eisenberg, executive chairman of A&E Real Estate, says, “As long-term believers in the enduring strength of New York City and its residential neighborhoods, we have been undeterred by the economic, regulatory, and pandemic-related uncertainties that have periodically sent other multifamily investors to the sidelines.
“Our unwavering conviction has set us up to grow and diversify our portfolio through an array of acquisitions—from luxury buildings on the Upper West Side and Sutton Place to working-class apartment communities in Sheepshead Bay and Rego Park. In doing so, we have positioned A&E as a leading owner and operator across the entire spectrum of multifamily housing throughout New York City.”
Developed by the LeFrak family between 1957 and 1961, the South Brooklyn buildings have undergone more than $18 million in capital improvements throughout the portfolio since 2015. The largest buildings in the portfolio include 2750 Homecrest Ave. and 2775 E. 12th St. with 189 apartments; and 2375 E. 3rd St. with 134 apartments.
“The LeFrak family has been one of the most prolific and successful developers of multifamily housing in New York. We are thrilled by this rare opportunity to acquire such a high-quality portfolio in two bedrock Brooklyn communities and are committed to maintaining the high standards the Lefraks set for all these residential buildings. We have long enjoyed a strong relationship with the LeFrak family, and that relationship was instrumental in getting this deal done,” Eisenberg adds.
The South Brooklyn portfolio acquisition was financed in part through a $170 million fixed-rate loan from Signature Bank, arranged by Jonathan Estreich and Jason Boxer of Estreich & Co.
“The completion of this deal serves to underscore our confidence in the future of this city,” says John Arrillaga Jr., co-founder of A&E Real Estate. “Jon Estreich and his team did an excellent job securing debt financing in the midst of an incredibly challenging lending environment.”