35-65 84th Street; Douglas Eisenberg, Founding Principal of A&E Real Estate; James Patchett, CEO of A&E Real Estate; 80-01 37th Avenue

A&E buys Queens mixed-use portfolio for pandemic-priced $59M
Two buildings trade for 11 percent below asking

Confidence in multifamily is catching in the outer boroughs.

A&E Real Estate picked up two mixed-used buildings in Jackson Heights this week for $58.75 million, about 11 percent below the asking price of $66.5 million, said a spokesperson for Marcus & Millichap’s NY Multifamily group, which brokered the deal.

The sale points to investor interest in a discounted multifamily market and confidence in neighborhoods outside of Manhattan, a source familiar with the matter said.

The Queens buildings, Georgian Hall and Ravenna Court, located at 35-64 84th Street and 80-01 37th Avenue, respectively, have been family-owned and managed by the Joseph Bruno Trust since their development nearly a century ago.

Together, the properties have 198 apartments and 23 commercial units. According to the Rent Guidelines Board, Georgian Hall contains rent-stabilized units.

Queens has fewer multifamily buildings than the other boroughs, and properties tend to be held tightly by multi-generational owners. As such, prices have historically remained competitive with the rest of the city.

The Jackson Heights portfolio’s discount reflects lingering pandemic pricing, a source familiar with the deal said.

Second-quarter tallies of multifamily investment showed a rebounding market with activity stretching to boroughs beyond Manhattan. Highlights included a 15-building Bronx portfolio that changed hands in June for $122 million.

This week, Phoenix Realty Group, a New York-based multifamily investor, acquired an eight-building multifamily complex in the South Bronx for $91 million, a quarter more than seller Spencer Equity paid in 2016.