A Brooklyn multifamily building on the border of Park Slope and Gowanus has traded hands for $68.5 million, about $13 million less than it sold for in 2018, city records show.
Trinity Place Holdings has sold 237 11th St., at the corner of Fourth Avenue, to a partnership of international investment group Bluestone Investments and New York-based investment company Shel Capital, according to property records and an announcement from JLL, which brokered the deal for both sides. Trinity had purchased the property in 2018 for about $81.2 million, records show.
Rony Kravel, principal at Shel Capital, said both organizations are “strong believers in the New York rental market” in a statement on behalf of the partnership. A representative for Trinity did not respond to a request for comment by press time.
The deal included a roughly $44.5 million financing package, which JLL arranged and appears to have provided as well, according to property records.
The building stands 12 stories tall and contains 105 rental units, according to JLL. It was completed in 2017 by Adam America Real Estate and Slate Property Group, from whom Trinity bought the property. It is fully occupied, with rents for recently leased apartments ranging from $3,158 for a one-bedroom to $6,498 for a two-bedroom, according to StreetEasy.
The property also includes retail space, which is fully occupied by a Starbucks, a Massage Envy and a dentist, according to JLL.
The JLL team that arranged the sale was led by Jeffrey Julien, Rob Hinckley and Steven Rutman, while the team that arranged the financing consisted of Michael Shmuely, Michael Zaremski and John Flynn.
Although multiple high-profile office buildings have recently sold at steep discounts amid the sector’s post-pandemic struggles, the city’s multifamily sector has been more resilient. Brooklyn’s median rent hit a record high of $3,950 in 2023 and was $3,600 in February, according to data from Douglas Elliman and Miller Samuel. It was unclear why exactly the 11th Street building sold at such a loss despite this, although stubbornly high interest rates would seem to be a likely culprit.
Gowanus in particular has been seeing a residential boom lately following the city’s 2021 rezoning of the neighborhood, which aimed to create more than 8,000 apartments.
Trinity Place Holdings was founded in 2012 and is based in Midtown. Its largest asset is the luxury condo project at 77 Greenwich St. in the Financial District, according to the company’s website.
Shel Capital and Bluestone Investments previously partnered to buy four East Village apartment buildings in 2021 for $51.5 million.
