Lefrak has exited its rent-stabilized Brooklyn portfolio, selling four multifamily properties containing over 300 units to investor Avi Singer's HF NYC for $38 million. The sale covers buildings in Bensonhurst and Midwood, part of what Lefrak calls its Parkway Portfolio in southern Brooklyn. J.P. Morgan Chase financed the transaction.
The deal marks a strategic shift for Lefrak, the long-established New York developer. Rent-stabilized housing in Brooklyn offers limited upside compared to market-rate buildings. With rents capped by law and vacancy bonuses exhausted in many cases, these properties generate steady but modest returns. For Lefrak, divesting allows capital redeployment toward higher-margin projects or development opportunities elsewhere.
HF NYC, Singer's firm, now holds over 300 rent-stabilized units generating predictable cash flows. These buildings attract institutional investors seeking stable, long-term income streams rather than rapid appreciation. The $38 million valuation translates to roughly $126,000 per unit, typical pricing for stabilized multifamily in outer Brooklyn markets where newer construction and market-rate conversions dominate development activity.
For tenants, the change in ownership carries mixed implications. Rent-stabilized protections remain in place regardless of ownership, limiting annual increases to city-approved percentages. However, new ownership sometimes brings capital improvements, which can trigger preferential rent resets. Existing residents should monitor lease renewal terms and any building upgrade notices from HF NYC.
For sellers and landlords holding stabilized stock, the transaction signals continued appetite for these assets despite tight margins. Institutional capital chases yield in this corner of the market, where development potential remains limited by regulations and zoning constraints.
For buyers seeking stabilized housing, these outer-borough neighborhoods remain affordable entry points to Brooklyn