CapRok Real Estate and Douglaston Realty Management Acquire Prime Four-Building Investment Portfolio in Astoria, New York

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CapRok Real Estate LLC and Douglaston Realty Management Corp. acquire four-building portfolio in Astoria, New York.

NEW YORK – January 28, 2013 – (PressReleasePoint) –  CapRok Real Estate LLC (CapRok), in partnership with Douglaston Realty Management Corp. (Douglaston), is pleased to announce the acquisition of a four-building portfolio in Astoria, New York. The prime multifamily building package consists of 143 residential units and 11 ground-floor retail stores.
 
The acquisition includes 21-80 38^th Street, containing 35 multifamily units and 6 commercial units; 21-81 38^th Street, containing 24 multifamily and 5 commercial units; 23-05 30^th Avenue, containing 42 multifamily units; and 23-15 30^th Avenue, containing 42 multifamily units.
 
Ideal Location in a Well-Established Neighborhood
The 38^th Street properties are ideally located in Astoria along Ditmars Boulevard, a prime commercial and residential location.  The 30^th Avenue buildings are just blocks from 31^st Street—the main hub that runs through Astoria. The properties are easily accessible by public transportation and are within a 10-minute subway ride to Midtown Manhattan.  
 
“Having had a strong familiarity with the neighborhood throughout my life, the continuous transformation taking place in Astoria has been remarkable. It is amazing to see the neighborhood receive recognition for its restaurants, retail sector and lively nightlife. The desire to live in Astoria is now greater than ever,” said George Michelis, Managing Principal of Douglaston Realty Management.
 
Strong Financial Position
Currently, all but two of the 11 top-tier commercial units are leased by popular retail destinations including Dunkin Donuts, a grocery store, a laundromat, a beauty salon, a jewelry store and a coffee shop, among others.  Due to the prime location of the mixed-use buildings and the efforts of the new owners, leasing offers have already been received for the vacant commercial units.
 
The residential units are at nearly 100 percent occupancy, with only one of 143 units remaining available. The portfolio contains 24 cooperative apartments and there is strong potential for the sale of these units.  CapRok and Douglaston aim to improve the value of these well-maintained properties by commissioning renovations and maximizing layouts on turnover units.  The partners are implementing a number of operational efficiency programs to reduce building operating costs, while upgrading the assets in a targeted effort to enhance rental rates—as they have accomplished at other sites.  CapRok has a long track record of managing top-tier New York assets and Douglaston operates approximately 1700 multifamily units in and around the Astoria market.
 
Rapidly Improving Market
“Astoria and the broader Long Island City market have enjoyed a boom of development and strong absorption over the past several decades,” said Michael Psyllos, Managing Partner at CapRok Real Estate. “The acquisition of this portfolio underscores our company’s commitment to identifying ideally located real estate investment opportunities, where we, along with our partners, can add value.  Moreover, our vast experience in the sector and strong relationships with lenders and service providers allow us to overcome obstacles that other competitors cannot.”
 
According to John Petras, Managing Principal of Douglaston Realty Management, Astoria has been a phenomenal market for the company.  “Astoria is a young and vibrant neighborhood, and is equally as vibrant as an investment opportunity,” said Mr. Petras. “The neighborhood has a Manhattan-type atmosphere with many of the same amenities, at a fraction of the cost. This large portfolio acquisition is a rare transaction for the area and is a great opportunity for long-term growth.”
 
Successfully Overcoming Transactional Difficulties
While real estate transaction volumes typically pick up towards year end, 2012 saw a particular flurry of deal settlements as investors were concerned with the potential for a capital gains tax rate increase of 33%.  John Petras recalls receiving a call on October 25 at 6:30am from the broker of the Astoria portfolio saying that the seller’s existing deal had fallen through.  “The deal was ours – at our offer price – as long as we could close by year end,” said Mr. Petras.
 
The principals of CapRok and Douglaston immediately went to work knowing that the seller wanted an executed contract within one week, with no contingencies.  The timeline was further stressed when Hurricane Sandy left much of the metropolitan area without electricity.  Nonetheless, the deal team pushed forward and the contract was signed on schedule.  Thereafter, the sponsors quickly leveraged existing banking relationships to identify attractive financing, and obtained a loan commitment in just a few short weeks, leaving ample time before the ultimate settlement date of December 21, 2012.
 
Contact Information
For more information about this transaction, please contact Michael P. Psyllos at (914) 740-1553 or mpsyllos@caprokcapital.com; or John Petras and George Michelis at (718) 229-4156 or
jpetras@douglastonmgmt.com and gmichelis@douglastonmgmt.com.
 
About CapRok Real Estate LLC
CapRok Real Estate LLC is the real estate affiliate of CapRok Capital LLC, a boutique investment firm headquartered in Rye, New York. As a diversified real estate finance and investment company, CapRok Real Estate focuses on investing in exceptional real estate debt and equity in all major asset classes from coast to coast. CapRok Real Estate also advises institutions with respect to the acquisition, sale, restructuring, capitalization or recapitalization of Commercial Real Estate debt and equity investments.
 
About Douglaston Realty Management Corp.
Douglaston Realty Management has operated, owned and developed multifamily properties in the New York metropolitan area since 1978. Headquartered in the Douglaston section of Queens, New York, the company currently owns and/or manages approximately 1700 cooperative units, condominiums and rental apartments, in addition to retail and industrial properties. Douglaston Realty Management has a strong focus on complex real estate investments, including property acquisitions and the purchase of performing and non-performing real estate debt.