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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.
- ◦Sale/Acquisition

