Carlyle Group and Z+G Property Group acquires newly built luxury Williamsburg rental building for $97.5M

NEW YORK, N.Y., Aug. 2, 2023 – JLL Capital Markets announced today that it has closed the $97.5 million sale of 8 Marcy Ave., an eight-story, 123-unit luxury rental building located in Williamsburg, Brooklyn.

JLL represented the seller, Prospect Development, which is led by Joel Wertzberger and Konstantin Gubareff, the property’s original developer. A joint venture between The Carlyle Group, a multinational private equity corporation, and Z+G Group acquired the asset. JLL also arranged $73.6 million acquisition financing for the buyer with Invesco Real Estate.

The building was delivered in January of this year and is on the corner of Marcy and Metropolitan avenues. 8 Marcy has two fully occupied commercial units, 86 market rate and 37 affordable apartments comprised of 31 studios, 65 one-bedrooms and 27 two-bedrooms, which were fully leased within a three-month period.

The property is located at the epicenter of Williamsburg, one of the most desirable neighborhoods in New York City, surrounded by cutting-edge dining, centralized shopping along the Bedford Avenue Retail Corridor, world-class nightlife and waterfront esplanades. With convenient access to public transit via the Bedford Avenue and Lorimer/Metropolitan Stations, 8 Marcy Ave. offers a 15-minute commute into Manhattan.

The JLL Capital Markets Investment Sales and Advisory team representing the seller was led by Ethan Stanton, along with Jeffrey Julien, Brendan Maddigan, Stephen Palmese, Rob Hinckley, Michael Mazzara, Winfield Clifford, Steven Rutman and Jay Leshinsky.

JLL’s Capital Markets Debt Advisory team was led by Steven Klein and Geoff Goldstein along with Christopher Pratt.

“8 Marcy is the newest benchmark on where cap rates for new construction multi-housing have settled in New York City. Our client had the benefit of double-digit rent growth since they started the project, which resulted in a positive outcome for all involved,” said Stanton.

“This acquisition was a great opportunity for the sponsorship to add a newly-built, Class A multi-housing building in Brooklyn to their portfolio. In addition to the condo quality finishes and the luxury amenities, the sponsorship will also benefit from a brand new 421 tax abatement,” added Klein.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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