Lee & Associates NYC on Sept. 4 completed the $6.8 million sale of 75 Pierrepont St., a 25,800-square foot, six-story, rent stabilized residential building in Brooklyn Heights at a 6.2% cap rate.
"The sale of this Brooklyn Heights jewel for a 6.2% cap shows that there is hope amongst the NYC investment community that the legislature will one day realize that the best way out of a housing crisis is building more units, not regulating them," said Thomas Gammino, executive managing director at Lee & Associates NYC.
After the passage of the Housing Stability and Tenant Protection Act in 2019, some investors have noticed difficulty in finding buyers interested in fully rent-stabilized buildings, according to a press release.
The profitability in investment into rent-stabilized properties is often low due to the fact that while New York State regulates the rent, it is the City of New York that sets the tax rates.
75 Pierrepont Street is a 37-unit, fully occupied, elevator building, consisting of 25 one-bedroom and 12 studio units. It is located in a historic and transit rich area, central to seven easily accessible subway lines and within walking distance to a variety of notable attractions including the Brooklyn Bridge Promenade, Camden Plaza Park and Brooklyn Bridge Park.
