The Midwood Portfolio 550 East 21st Street, 850 East 17th Street, 855 East 19th Street, 3111 Aurelia Court Midwood
Closed in 2022 at $41,880,000
<p>TerraCRG successfully closed the $41.88 million sale of a four-building elevator multifamily portfolio in Midwood, Brooklyn, comprising 246 rent-stabilized units across 550 East 21st Street, 850 East 17th Street, 855 East 19th Street, and 3111 Aurelia Court. The properties, built in the 1940s and sold together for the first time, offer a mix of studio-to-three-bedroom units. TerraCRG Partners Ofer Cohen, Matt Cosentino, and Daniel Lebor exclusively represented the seller, positioning the portfolio as a rare scale opportunity with strong in-place income and upside potential, attracting a large rent-stabilized investor. The portfolio traded at a sub-5% cap rate, reflecting strong demand for stabilized multifamily assets in Brooklyn despite broader market conditions. TerraCRG emphasized the advantage of selling the buildings as a portfolio rather than individually to maximize value and investor interest.</p>
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About this Property
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550 East 21st Street
54 Units & 28 Parking Spaces, located just north of Ditmas Avenue
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850 East 17th Street
35 Units, located less than two blocks from the Q train (Avenue H stop)
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855 East 19th Street
60 Units, located next to Ocean Avenue & Brooklyn College
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3111 Aurelia Court
97 Units & 30 Parking Spaces, located adjacent to the Triangle Junction Shopping Center
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Gross SF
251,762
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Portfolio Price/Unit
$170,243
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Portfolio Price/SF
$166
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Total Units
246
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Total Parking Spaces
58
Challenges
- Multiple generations of ownership
- Property had never sold before
- Portfolio of significant size and scale
- 100% rent stabilized following the Rent Laws 2019 Update
Sealing the Deal
Built in the 1940s, the buildings had been kept within the Kraus & Livingston family ownership for over 70 years. For the first time since then they were being offered for sale, providing a once in a lifetime investment opportunity for potential buyers. Although the properties were physically maintained and revenue-generating, TerraCRG's team saw several potential growth areas, such as existing preferential rents and adjoining vacant apartments, that the sellers could utilize to increase the existing income generated, and ultimately maximize the value of this unique portfolio.
As such, TerraCRG's team was confident that the buildings were substantially worth more as a portfolio and diligently worked with the complex ownership group to ensure that they would be willing to sell the four buildings under a single transaction instead of them being sold individually. Purchased by a large owner of rent-stabilized assets, TerraCRG was able to achieve a sub 5% cap rate on the sale, which is a significant premium on the typical rent stabilized transactions within Brooklyn. Conveniently located near retail corridors and nearby transportation, this portfolio is a testament to the resilience of the Investment Sales market in Brooklyn. TerraCRG is proud of our specialized approach as we continue to help investors successfully seek large assets, like this one, throughout the borough.
As such, TerraCRG's team was confident that the buildings were substantially worth more as a portfolio and diligently worked with the complex ownership group to ensure that they would be willing to sell the four buildings under a single transaction instead of them being sold individually. Purchased by a large owner of rent-stabilized assets, TerraCRG was able to achieve a sub 5% cap rate on the sale, which is a significant premium on the typical rent stabilized transactions within Brooklyn. Conveniently located near retail corridors and nearby transportation, this portfolio is a testament to the resilience of the Investment Sales market in Brooklyn. TerraCRG is proud of our specialized approach as we continue to help investors successfully seek large assets, like this one, throughout the borough.