Connect with us


Goldman Sachs buys 1 Flatbush Avenue

Goldman Sachs has entered contract to acquire the residential component of 1 Flatbush Avenue from Slate Property Group and Meadow Partners for about $100 million. The multi-family portion of the building spans 123,000 SF, and contains 183 apartments (37 are rent stabilized).

  • Worth Noting: The Downtown Brooklyn building benefits from a 25-year, 421a tax abatement that expires in 2044.

Decoding the rent roll and low expenses: 

  • Average rents for the free market units: Studios rent for $2,450/month; one-bedrooms at $2,895/month; two-bedrooms, one-bath at $3,415 /month; and two-bedroom, two-bath at $3,915/ month, according to StreetEasy.
  • Rents for the regulated units: 21 studios for $867/month; 8 one-bedrooms at $931/month; and 8 two-bedrooms at $1,123/month. The deal appears to have traded at around a 5% cap rate.

Be patient: The first wave of buying reflects deals that are slightly discounted from the pre-Covid market –– these are not distressed. 

Why it matters: This marks Goldman Sachs’ first significant NYC acquisition since it restarted its dormant real estate investment program last year with a $2.5 billion fund, TRD noted.

Continue Reading
To Top