Bronstein Properties acquires 456 Grand Street

Deal traded at a 5.35% cap rate

Barry Rudofsky’s Bronstein Properties has acquired 456 Grand Street from Rudolf Abramov and Meir Babaev for $43.3 million. The East Williamsburg property spans 74,572 SF, and contains 52 apartments, two retail units, and a 50 space parking garage (17,500 SF).

Dig Deeper: Sources close to the deal confirmed that the property traded at a 5.35% cap rate and 16 times the rent roll. The property benefits from a 421-abatement that expires in 2030.

Sound Smart: Currently, the difference between the legal and actual rent is a meager $13,179, so the gross income will effectively be unchanged until 2030. Although the retail leases are slightly undermarket at $54 PSF (blended), there is no immediate upside as both leases expire in 2027.

Takeaway: These 421-a deals are never as good as they appear because once the abatement starts to burn off in 2026, the cap rate will progressively compress.