Joint Venture Plans to Renovate Existing Units into High-End Luxury Apartments
NEW YORK, Sept. 10, 2015 /PRNewswire/ — Madison Realty Capital (MRC), an institutionally backed real estate investment firm focused on real estate equity and debt investments in the middle markets, and Steelpoint Property Group (Steelpoint), a leading real estate investment and development company, announced they have acquired 78 Prospect Park West in an off-market transaction from long-term ownership for $28 million. The seven-story 41,113 SF multifamily elevator building is located on Prospect Park West between 3rd and 4th Street in the Park Slope neighborhood of Brooklyn, NY, within the highly coveted P.S. 321 school district.
Josh Zegen, Co-Founder and Managing Principal of MRC, and Ben Haghani, Principal of Steelpoint Property Group, jointly made the announcement.
The 78 Prospect Park West property, which was built in the 1920s and has been family owned for roughly 50 years, contains 40 large predominantly one and two bedroom apartments, 10 of which are currently vacant. The joint venture plans to renovate and reposition as many units as possible into high-end luxury apartments and will also initiate a capital expenditure program geared towards modernizing the property and enhancing operating efficiency by maximizing both layouts and the building's existing square footage.
"78 Prospect Park West is a remarkable property in an irreplaceable location with almost 100 feet of frontage facing Prospect Park," said Mr. Zegen. Mr. Haghani adds, "It is extremely rare for an elevator building on Prospect Park to trade and we are pleased to acquire this trophy asset at a great basis. Steelpoint looks forward to transforming the property with our partner, Madison Realty Capital, into a high-end rental property."
The property is located directly across from Prospect Park along one of the most pristine blocks in Park Slope. The property is also within close proximity to public transportation, including the 7th Avenue subway station serviced by the F and G trains, the 7th Avenue subway station on Flatbush Avenue serviced by the B and Q trains, and the Grand Army Plaza subway station serviced by the 2, 3, and 4 trains.
Aaron Mazor of TOWN Residential and Jonathan Butwin and Scott Dweck of TOWN Commercial represented both the seller and the buyers in the transaction.
About Madison Realty Capital (MRC)
MRC is a New York-based real estate investment firm that pursues real estate equity and debt investments in the middle market. Founded in 2004, MRC has invested in approximately $3.5 billion of transactions in the multifamily, retail, office, industrial and hotel sectors.
About Steelpoint Property Group LLC
Steelpoint Property Group LLC is a privately owned real estate investment and development company led by Ben Haghani. Steelpoint's core focus is to acquire real estate in highly desirable locations, primarily within the metropolitan New York area. Through creative repositioning and management, Steelpoint provides outsized returns to its strategic joint venture partners and investors. Steelpoint is headquartered in New York.
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