Forest City Realty Trust Inc. recently completed the sale of 461 Dean St., a 363-unit apartment community in Brooklyn, NY. The buyer was an international real estate manager.
The selling price was $156 million, reflecting a cap rate of approximately 4.5% on estimated 2018 net operating income. The sale is expected to generate net proceeds to Forest City of approximately $150 million, according to a prepared statement.
David J. LaRue, Forest City president and chief executive officer, said that the transaction “achieved attractive pricing for this recently stabilized asset, and enables the company to generate significant liquidity to further our deleveraging efforts and other strategic uses.”
He adds that “The economics of the sale also reflect the continued health of the Brooklyn multifamily rental market, and the continued value-creation opportunity in the market.”
The asset was 100% owned by Forest City and was not part of the joint venture with Greenland USA that is continuing the development of the Pacific Park Brooklyn mixed-use project. 461 Dean Street, which began phased opening in the third quarter of 2016, contains 50 percent affordable units. It was constructed using modular building technology and is among the tallest modular buildings in the world.