The property was purchased from 106th Street Realty Development Corp. for $14.25 million, with tax-deferred proceeds from BEB Capital’s recent sale of the Corinthian Parking Garage at 330 East 38th Street in Manhattan says a source.
“The Corinthian sale was a pivotal event in our business strategy,” says Mr. Brodsky. “Making use of the 1031 rules enabled us to leverage our success at the Corinthian by building our presence in East Harlem, one of Manhattan’s most vibrant, up-and-coming neighborhoods. We are committed to using our entrepreneurial creativity to develop this emerging market. East Harlem is a great place to invest, and the future extension of the Second Avenue subway line makes the area’s prospects even brighter.”
Mr. Brodsky notes that the company is in the planning stages for a second East Harlem development.
BEB Capital participates in almost all facets of real estate, including the investment, development, operations, and management of commercial and residential properties in New York, particularly on Long Island and in Queens, and along the Eastern Seaboard.
Mr. Brodsky says BEB Capital is putting new emphasis on institutional grade investments while diminishing the role of parking garages in its portfolio to instead focus on multifamily property. “Our company has grown dramatically in recent years, and having further honed our core competencies and intergenerational experience, we are now strategically developing critical mass in East Harlem’s multifamily inventory, building a core market there and helping the neighborhood achieve its very high potential,” adds the CEO.
The newly acquired property at 238 East 106th Street, conveniently situated between Second and Third avenues, was constructed in 2016. The 18,860 square-foot, eight-story building consists of 29 free-market rentals and nine parking spaces. It offers a range of amenities, including a virtual doorman with video intercom and central laundry, and every unit features a terrace.
Meridian Capital Group, one of the country’s most active brokerages represented the seller, buyer and obtained the financing for this transaction. Meridian Managing Director Abie Kassin and Vice President David Benharouch represented the seller and procured the buyer. Meridian Senior Associate Bryan Kallenberg and Managing Director Brian Flax negotiated $8.5 million in acquisition financing for the purchase.
BEB Capital (previously BEB Real Estate), was officially launched in October of 2016 by the Brodsky family, known for its long history in real estate development, and headed by patriarch and serial entrepreneur, Bert E. Brodsky. Now serving as the entity overseeing all aspects of the family business, BEB Capital reflects not only the real estate business the Brodsky family has built over the past five decades, but also its financial investments in several other corporate sectors, including healthcare, technology, and hospitality.
Privately-held and based in Port Washington, New York, BEB Capital has a real estate and investment portfolio consisting of mixed-use developments, parking facilities and restaurants totaling over $340 million in assets throughout the East Coast. In addition, it owns and operates a diverse set of businesses on a limited partner basis, enabling diversity among its investment portfolio.