Time Equities Inc. (TEI) has made its first multifamily acquisition in New York City in more than a decade with the purchase of 323 East 19th Street, a 38-unit rental building
located in Brooklyn’s Ditmas Park neighborhood.
Constructed in 2018 by Lightstone Management, the property offers a modern design, efficiently designed one- and two-bedroom layouts, a full suite of amenities, and outdoor space in the majority of units. The building is also 100% rent stabilized under an existing 421-a exemption.
“323 East 19th Street is one of the higher quality multifamily properties in Ditmas Park, a neighborhood I believe has great potential,” said Francis Greenburger, Chairman and CEO of TEI. “After more than a decade away from the city’s multifamily market, we saw this as the right asset to reenter the market. It is well-built, well-located, and reasonably priced. It reflects our belief that there are still smart, selective opportunities in New York for experienced long-term investors.”
Time Equities built its reputation throughout the 1970s and 1980s by acquiring and operating multifamily properties in New York City. Under Greenburger’s leadership, the firm has grown into a $7 billion global real estate platform with holdings in the U.S., Canada, and five additional countries. TEI continued to invest in New York multifamily for nearly 60 years but paused new acquisitions in the city in 2014 amid rising asset prices and significant shifts in local regulations.
“TEI saw this acquisition as a strategic opening in the current market cycle,” said Seth Coston, Director of Residential Asset Management at TEI. “Many multifamily properties are overleveraged, having taken out loans when interest rates were historically low. As these loans come due, some owners’ best option is to sell.
Time Equities is well-capitalized and experienced in navigating complex environments. We see this as an opportunity to acquire quality assets at rational prices.”
Like many NYC rental buildings completed in the late 2010s, 323 East 19th Street has faced economic headwinds, including pandemic-related vacancies and the long-term impacts of rent stabilization.
“By recapitalizing the property at a debt level that aligns with current rents and interest rates, we believe we can stabilize operations and deliver a solid return on investment,” Coston said. “We also see long-term upside in Ditmas Park, which continues to attract residents seeking value and space in Brooklyn.”
M&T Bank provided a $9.2MM mortgage for the acquisition.
Founded in 1966, Time Equities, Inc. (“TEI”) is a diversified investment, development, asset and property management, licensed real estate brokerage, and alternative energy company that has been in business for nearly 60 years. The TEI portfolio includes approximately 43 million square feet of residential, industrial, office and retail property including about 6,000 multi-family apartment units, approximately 900,000 square feet in pending acquisitions, and 2 million square feet of various property types in stages of pre-development and development. With 329 properties across 37 states, five Canadian provinces, Anguilla, Germany, Italy, and the Netherlands, the TEI portfolio benefits from a diversity of asset types including non-performing loans, B-notes, and alternative energy investments. TEI has a variety of market concentrations in the Northeast, Southeast, Midwest and West Coast of the U.S., and new markets around the world are always being
evaluated.
