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Silvershore to Sell Off Half  of its NYC Real Estate Holdings

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Silvershore Properties is looking to sell approximately half of its New York City real estate holdings. The firm has set an asking price of over $200 million for 44 Brooklyn rental buildings.

Silvershore Properties is looking to sell approximately half of its New York City real estate holdings. The firm has set an asking price of over $200 million for 44 Brooklyn rental buildings. As reported by the Real Deal, this is one of the largest multifamily portfolios to enter the market in recent history. Silvershore, a NoMad-based landlord founded by David Shorenstein and Jason Silverstein in 2008, currently owns just shy of 100 apartment buildings across NYC, valued at $400 million. Most of the firm’s properties are rent-stabilized, low-rise properties in Brooklyn.

Silvershore has hired Bob Knakal and Stephen Palmese from Cushman & Wakefield to market the portfolio of 44 buildings. The Brooklyn properties span 392,475 square feet, and include 398 rental apartments and 28 retail units. Most of the buildings are in the areas of Bedford-Stuyvesant, Bushwick, and Crown Heights. Some of those addresses are: 283 Albany Avenue in Crown Heights, 5416-5422 Fourth Avenue in Sunset Park, 219 13th Street in Park Slope and 429 Lincoln Place in Prospect Heights. 

“The properties in this portfolio are in extremely high demand and this is an opportunity for a buyer to capitalize on the tremendous future potential of Brooklyn,” Knakal said in a statement.

In February 2016, an affiliate of Silvershore sent out letters to Brooklyn homeowners soliciting to purchase their properties. The letters urged owners to sell, warning of an impending “major decline” in property values and market softening. According to Street Easy, in 2015 there was 8.3 percent growth to $537,193 in Median residential resale prices in Brooklyn. In 2016, the while the prices were still rising, the percentage of growth was down to roughly 4%. The multifamily market has also experienced a steady slowdown from the record year of 2015.

Still, Silvershore has been doing more selling than buying in recent years. In 2015, the firm sold a portfolio of 10 Brooklyn and Queens buildings, to Related Companies for $39.4 million. Only rarely have investors pursued a bulk sale of their multifamily holdings. Notably, in February 2015, the Dermot Company sold all of its 32 rent-stabilized building holdings to A&E Real Estate Holdings in a $360 million deal. In April 2016, the Brock family also made an exit, with an $80 million sale of a 14-building Chelsea portfolio, to Black Spruce Management.

By: Helen Zaboulani

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