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Bed-Stuy building value jumps $1 million per month

Springhouse sells 902-908 Bedford Ave. for $29M after buying it in 2013 for $18M

From left: Chaim Cahane, 902-908 Bedford Avenue and Adam Verner
From left: Chaim Cahane, 902-908 Bedford Avenue and Adam Verner

UPDATED, 3:33 p.m., Sept. 17: Less than a year after paying $18.2 million for a 65,000-square-foot multifamily rental building in Bedford-Stuyvesant, Springhouse Partners just sold it for $29 million, The Real Deal has learned. That means the building’s value jumped almost a million dollars every month since Springhouse bought it.

The nine-story property, built in 2005, is located at 902-908 Bedford Avenue and has 44 units and four private entrances. Many of the units are large four-bedroom, two-bathroom apartments, catered toward the student populations of nearby Pratt Institute and Long Island University.

“It took a lot of convincing to get Verner [Adam Verner of Springhouse Partners] to sell as there is still significant upside in the building,” said Chaim Cahane of Forte Capital Management, who was the sole broker on the off-market deal. Springhouse, in Partnership With Investment Firm Avenue Realty Capital, paid Michael Shah’s DelShah Capital $280 a foot for the property last year, which has now sold for its full asking price of over $440 a foot.

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The buyer, who Cahane identified only as a Brooklyn-based investor listed as 97 Prospect LLC, plans to renovate units as they become vacant and continue to focus on Brooklyn’s student population.

Springhouse recently sold 90-96 Meserole Street in East Williamsburg to Fred Wilpon’s Sterling Equities for $21 million, after paying $13.75 million for the property in June 2012.

Correction: An earlier version of the story misstated the neighborhood the property is in. It is in Bedford-Stuyvesant

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