Deal traded at a 4.5% cap rate
Principal Global Investors has acquired 461 Dean Street from Forest City Realty Trust for $156 million. The newly built residential building spans 333,280 SF and contains 363 apartments.
Sound Smart: Sources close to the deal confirm to the Daily Beat that the property traded at a 4.5 cap. Principal Global was attracted to the property’s steady cash flow and its proximity to the Barclays Center.
Worth Noting: Since the property was funded using the 50/30/20 Mixed-Income Program, only half the units are free market. In order to receive the subsidies and the financing benefits from the HDC and HPD, thirty percent of the units must be set aside for middle-income families, and twenty percent for lower-income residents.
Bottom Line: The sale will generate net proceeds of approximately $150 million to Forest City. Job well done! Great program for emerging neighborhoods.