The Lee & Flushing Avenue Portfolio (279 Lee Avenue & 587-591 Flushing Avenue) consists of four multifamily buildings in South Williamsburg, Brooklyn. Situated on the same block as the Flushing Avenue Subway Station G, the Portfolio totals 40 apartments grossing 44,575 square feet.
EXPIRED 15-YEAR 421A TAX ABATEMENT
The Properties previously benefited from a 15-year 421a tax abatement, which have recently expired, making all of the units eligible to convert to free market status upon vacancy of each in-place tenant.
MARK TO MARKET OPPORTUNITY
In-place rents currently blend to $36/RSF, which is ~80% less than current market rents in South Williamsburg. As tenants being to vacate units, a new owner will be able to capture these increased rents.
587-591 Flushing Avenue carries $9,100,000 of assumable debt with 6.5 years remaining at 2.78%. Subordinate financing options are available through Fannie Mae with up to 75% LTV and 1.30x DSCR.
TAX CLASS PROTECTION
The entirety of the Portfolio is tax class protected 2B, which provides for lower tax burdens and greater shelter against future increases. This will insulate the Properties from any significant increase in assessments as the rents are marked to market.