Pinnacle buys two Flushing rentals for $58M
Treetop owned the J-51 buildings for little over a year
Treetop Development sold a pair of Flushing rental buildings for $57.6 million, a little over a year after buying them in an eight-building portfolio, sources told The Real Deal.
The buyer, Joel Wiener’s Pinnacle Group, closed on the purchase Friday of two elevator buildings at 132-40 and 133-17 Sanford Avenue for about $366 per square foot. The properties collectively hold 181 rental apartments and span 157,400 square feet, according to marketing materials.
The buildings at 132-40 and 133-17 Sanford are known, respectively, as Summit House and the El Dorado. Average rent there is $1,436 and $1,380 per per month, respectively, marketing materials show. Together, the apartments boast a combined net operating income of $1.8 million, the documents show.
Both buildings were constructed in the 1960s and have the J-51 tax abatement.
Treetop, a New Jersey-based multifamily investment firm led by Adam Mermelstein and Azi Mandel, bought an eight-building, 608-unit Queens portfolio from Algin Management in December 2015. Of the total portfolio purchase, Treetop paid $31.3 million for the two Sanford Avenue buildings, records show. At the time, the firm was planning to spend about $10 million on renovating the eight properties.
About a year-and-a-half later, Treetop nearly doubled its money in the sale.