High-rise commercial buildings

Sub Markets

Property Sectors

Topics

New York & Tri-State CRE News In Your Inbox.

Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.

New York & Tri-State  + Outer  + Apartments  | 

Rent-Stabilized Brooklyn Heights Property Trades at 6.2% Cap Rate

Lee & Associates NYC completed the $6.8-million sale of 75 Pierrepont St., a 25,800-square foot, six-story, rent stabilized, residential building in Brooklyn Heights at a 6.2% cap rate. Thomas Gammino and Patrick Donahue from Lee NYC represented both the buyer and seller of the fully occupied 37-unit property. 

Since the passage of the Housing Stability and Tenant Protection Act in 2019, it has been difficult to find buyers interested in fully rent-stabilized buildings, according to Lee NYC. The profitability in investment into rent-stabilized properties is low, in no small part due to the fact that while New York State regulates the rent, the City of New York sets the tax rates.

“The sale of this Brooklyn Heights jewel for a 6.2% cap shows that there is hope amongst the NYC investment community that the legislature will one day realize that the best way out of a housing crisis is building more units, not regulating them,” said Gammino.

Read More News Stories About: Lee & Associates
Connect

Inside The Story

Lee NYC's Gammino

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Sale/Acquisition
New call-to-action
New call-to-action