HFF Closes $154.25 Million Sale of 271-Unit Multi-Housing Property in Downtown Brooklyn

NEW YORK--()--Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the $154.25 million sale of The Addison, a 271-unit, high-rise multi-housing property in downtown Brooklyn.

“The Addison sale represents one of the first sizable sales transactions of an institutional-quality multi-housing asset in downtown Brooklyn”

HFF represented Waterton in the sale of the property. Bentall Kennedy purchased the asset free and clear of existing financing.

Completed in 2011, The Addison comprises a 26-story and 15-story tower with 65 studio, 117 one-bedroom and 89 two-bedroom units – a small portion of which are designated affordable rate – that average 715 square feet. Additionally, the property has three fully-leased ground-floor retail storefronts totaling 6,610 square feet and a 109-space, below-grade parking garage managed by a third party. The Addison features contemporary unit finishes such as stainless steel appliances, granite countertops, washers and dryers in select units and an amenity package, including laundry facilities, 24-hour door attendant, lounge with fireplace, fitness center and unobstructed southward views of Boerum Hill. The property is located directly above the Hoyt-Schermerhorn subway station (A, C, G lines) at 225 Schermerhorn Street midway between Hoyt and Bond Streets. The Addison is also within a few blocks of an additional 10 subway lines and the Atlantic Terminal lines. Other nearby amenities include Fort Green Park and multiple retail and dining destinations on Smith Street, Fulton Street and Atlantic Avenue retail corridors. The property encompasses four tax lots; the largest two lots are the beneficiary of a 15-year 421-a tax abatement with approximately nine years remaining, and the smaller two are subject to a 25-year 421-a tax abatement with approximately 19 years remaining.

The HFF investment sales team representing the seller was led by senior managing director Andrew Scandalios and managing directors Rob Hinckley and Jeff Julien along with executive managing director Matthew Lawton.

“The Addison sale represents one of the first sizable sales transactions of an institutional-quality multi-housing asset in downtown Brooklyn,” said Hinckley. “Waterton did an excellent job in acquiring, completing construction and operating the asset over the last six years.”

“Even though the property is already well maintained, we feel the asset has tremendous long-term upside for the buyer due to its location in an increasingly sizable and transforming market,” added Scandalios. “There are several ways the buyer may elect to add value, including adding in additional amenity space via unused lower-level areas, improving on existing common area configurations and the eventual renovation of units to appeal to the evolving aesthetic of the Brooklyn market.”

About Waterton

Waterton is a real estate investor and operator with a focus on U.S. multifamily and hospitality properties. Founded in 1995, Waterton executes value-add strategies and manages a national portfolio of multifamily and hospitality properties on behalf of institutional investors, family offices and financial institutions. Since its formation, the company has invested over $5.3 billion in assets. Waterton is privately held and is headquartered in Chicago with regional teams throughout the United States. Currently, Waterton’s portfolio includes approximately $4 billion in assets, including approximately 20,000 multifamily units and 13 hotels. Visit Waterton’s new website: www.waterton.com.

Bentall Kennedy

Bentall Kennedy is one of the 30 largest global real estate investment advisors and one of the top 10 in North America. Bentall Kennedy serves the interests of more than 550 institutional clients, managing approximately $35 billion of gross assets across 60 million square feet of office, retail, industrial, and multi-residential properties throughout North America (as of the most recently completed fiscal quarter). Bentall Kennedy is a recognized leader in Responsible Property Investing, ranking first globally in the Global Real Estate Sustainability Benchmark (GRESB) diversified peer group for 2015. Bentall Kennedy is the exclusive real estate investment management platform of the Sun Life Investment Management group of companies and is owned by Sun Life Financial. For more information on Bentall Kennedy, visit www.bentallkennedy.com.

About HFF

HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

Contacts

HFF
ANDREW SCANDALIOS, (212) 245-2425
HFF Senior Managing Director
ascandalios@hfflp.com
or
OLIVIA HENNESSEY, (713) 852-3500
HFF PR Coordinator, Marketing
ohennessey@hfflp.com

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Release Summary

HFF announced today that it has closed the $154.25 million sale of The Addison, a 271-unit, high-rise multi-housing property in downtown Brooklyn.

HFF