case study:
346 East 29th Street
Brooklyn, NY
65 Units | $10.5 Million Total Capitalization | Acquired 03/2012
Investment Thesis:
65 unit building with 19 indoor garage spaces partially destroyed by fire, to be rebuilt to condo-level finish quality. Together with the addition of amenities will attract renters priced out of nearby Prospect Park.
Plan:
$5.85 million gut renovation to rebuild building, with superior finishes and amenities, while establishing J-51 real estate tax treatment and raising rents to market levels.
Results:
Reconstruction completed in 18 months, and building fully leased in 3 months. June 2014 sale for $17 million, producing a 56 percent gross IRR.
