GA Keen Realty Advisors, LLC, a division of Great American Group, Inc. (OTCBB: GAMR), recently advised Brookdale Hospital and Medical Center on a complex, $22 million sale of a real estate portfolio consisting of four apartment buildings previously owned by the hospital.
GA Keen Realty Advisors brought together a group of Brooklyn multi-family investors, led by apartment owners David Spira and Robert Wolf, who closed on the purchase Nov. 2. According to GA Keen Realty Advisors Co-President Matthew Bordwin, a 12-month “rent hold” needed to be addressed as part of the sale, making the deal more challenging. In addition, the New York State Attorney General’s office needed to approve the transaction, as is policy when selling a property owned by a not-for-profit entity.
“The rents being paid by the tenants are below market, and we expect they’ll stay that way due to rent regulations,” Bordwin said. “Given these constraints, the sales price generated represented an outstanding price for the seller based on the current net operating income being generated by the properties.”
“We were extremely pleased with the expertise provided by GA Keen Realty Advisors and the end result we achieved,” said Steve Korf, a partner with the consulting firm of Grant Thornton and the interim chief operating officer at Brookdale Hospital. “Our firm was hired earlier this year to stabilize the hospital’s financial position and this transaction represents a positive step in that process.”
The properties included a 20-story, 172-unit building at 7 Hegeman Ave.; a 12-story, 113-unit building at 660 E. 98th St.; a six-story, 54-unit property at 505 Rockaway Parkway; and a four-story, 42-unit building at 525 Rockaway Parkway.
GA Keen Realty Advisors representatives involved in the transaction included Bordwin, co-president Harold Bordwin and brokers Christopher Mahoney and Heather Milazzo. Other members of the negotiating team were attorneys Brian Cohen, Chris Rabil and Jeff Thrope with the law firm of Foley & Lardner LLP, and Eric Altman, Jay Gerzog and Daniel Lewis with the law firm of Epstein Becker Green. Other members of the Grant Thornton team working with Korf included Mark Toney, the Chief Executive Officer, James Porter and Chris Jadro.