Newswire Residential

Jungreis and The Corbin Group at Rosewood Realty Broker Strulovitch’s 13 Building Portfolio at Bankruptcy Auction

Rosewood Realty Group’s Aaron Jungreis, Greg Corbin and Chaya Milworn brokered the $19.6 million auction sale of a 13-building portfolio in Brooklyn. The 13 properties were part of Chaskiel Strulovitch’s 31 building portfolio. The bankruptcy sale included; 1125-1133 Greene Avenue, 1213 Jefferson Avenue, 568 Willoughby Avenue, 618 Lafayette Avenue, 834 Metropolitan Avenue, 92 South 4th Street, 325 Franklin Avenue, 53 Stanhope Street and 263 18th Street.

“This was a complex roller coaster of a deal from start to finish,” said Greg Corbin, Rosewood’s President of Bankruptcy and Restructuring. “I’ve never seen a more competitive auction which stretched over two days and consisted of 142 rounds of bidding.”

According to Corbin, there were 11 registered bidders who signed 27 contracts for the portfolio in bulk and for individual properties. “The sale metrics translated to a low four percent cap rate and price of $478,000 per unit, a resounding success,” he added.

The properties benefit from some operating efficiencies that include — but are not limited to — free market rents and favorable tax classes that result in very strong operating ratios.

The buildings are all located in desirable Brooklyn residential neighborhoods that are in strong demand and command high rental rates. Also, a bundle of five buildings within the portfolio that are contiguous, allow for managerial efficiencies.

“The properties appealed to a vast range of investors,” said Milworn. “We worked with buyers who viewed it as a value-add multifamily or as condo conversions.”

FREO Group opened the auction with a stalking-horse bid of $17.4 million for the entire 13-property portfolio. Ten others joined the bidding, but only on individual properties, not the entire portfolio. In the end, Marvin Azrak, Joel Wertzberger, and Josef Mikkelson were the winners of the auction.

“The auction had many moving parts and complexities that required us to navigate with precision and patience,” added Milworn. “Ultimately, the winning bidders purchased assets in prime Brooklyn at a great basis. This ends a three-year drama surrounding the properties.”