Brooklyn Heights

Monroe Place rental building sold at 13% loss, even after renovations

October 11, 2024 Brooklyn Eagle Staff
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BROOKLYN HEIGHTS — A RENTAL APARTMENT BUILDING ON A RESIDENTIAL STREET was sold at a $7 million loss, even though it had been renovated with upgraded amenities, reported Crain’s New York Business this week. A filing in the NYC Department of Buildings city register showed a Sept. 16, 2024 termination of a UCC3 loan (mortgage or lien) on 25 Monroe Place, a one-block street that runs southbound between Clark and Pierrepont streets, with an Appellate Court building on its west side and a church on the opposite side. According to the city register, Benchmark sold it for $43 million, some $7 million less than its purchase price. Since its 2015 purchase of 25 Monroe Place, Benchmark had also made renovations, including adding a gym and upgrading a lobby. It also renovated some of the rent-stabilized apartments and flipped them at market value. Buyer Ben-Josef Group Holdings bought 25 Monroe Place at a prorated amount of  $650,000 per apartment. The sale losses are being attributed to decreasing value and the allure of buildings with rent-regulated tenants, particularly after state laws were enacted that favor tenants.

The first Certificate of Occupancy for 25 Monroe Place was issued on Aug. 3, 1938, according to the Department of Buildings’ database.

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