Residents of a 180-unit apartment building in Sheepshead Bay, Brooklyn, will see new ownership as Bonjour Capital has acquired the rental portion of 1501 Voorhies Avenue for $75 million. The transaction was first reported by Commercial Observer.
AvalonBay Communities, a well-known multifamily real estate investment trust, sold the property. Newmark’s Adam Spies, Dan O’Brien and Adam Doneger represented AvalonBay in the deal. The sale price equates to approximately $417,000 per unit. Both companies declined to comment on the sale.
The history of the site stretches back over a decade when AvalonBay and Muss Development filed plans for what would become the tallest post-war building in Sheepshead Bay. The partners purchased the lot in April 2014 for $16.2 million.
Before construction began, Superstorm Sandy caused significant flooding at the empty lot several blocks from Sheepshead Bay. In 2016, there was an initial plan to convert 56 units into condominiums with an expected sellout of $63 million; however, AvalonBay ultimately provided a $49 million loan for the project instead.
The building was completed in 2017 and now features 250,000 square feet dedicated to residential use along with nearly 34,000 square feet of amenities such as a fitness center, resident lounge, children’s playroom, outdoor pool, barbecues, bocce court and pool table.
There is also a retail and office component measuring about 12,000 square feet at an alternative address (1600 Sheepshead Bay Road), which includes tenants like Citibank and Starbucks.
Bonjour Capital has been active elsewhere in New York City real estate recently; this summer it sold five apartment buildings on West 137th Street for $62 million. Meanwhile, AvalonBay has expanded its portfolio outside New York by acquiring a large apartment complex in Coconut Creek, Florida for $98.3 million.
