Taconic, Ares Trade Brooklyn Asset
- May 28, 2015
Taconic Investment Partners and Ares Management L.P., owners of MeadowWood at Gateway in Brooklyn, N.Y., have completed the sale of the final 318 units of the 983 unsold condominiums it acquired at the 1,152-unit multi-family complex. The partners pocketed $53 million on the disposition.
MeadowWood has a notable history. A 791,000-square-foot luxury workforce housing destination for the middle-income set, MeadowWood at Gateway consists of 19 high-rise and garden-style buildings that sprouted up as an apartment community at 12205 Flatlands Ave.. over a two-year period ending in 1966. In 1991, a condo-conversion plan commenced and 15 years later, Taconic and Ares came along and grabbed the 983 units on the heels of an unsuccessful auction. One year later, in 2006, following a $40 million repositioning program, the partners began marketing the residences–just as the housing collapse and the Great Recession were preparing to take hold.
“The goal of the partnership between Ares and Taconic was to improve and reposition a large-scale, housing development, and we are especially proud that we did so through a very difficult time for the area during the economic downturn,” James Simmons, partner at Ares, noted in a press release. “The results of our joint efforts are that approximately 650 families now own quality homes in a community that continues its revitalization process.”
Due in no small part to the skyrocketing of the already sky-high price tags on condos in Manhattan, Brooklyn has become the trendy, more reasonably-priced alternative.
“Over the past several years Brooklyn has seen historically low inventory, unrelenting buyer demand, record-breaking prices and unprecedented absorption at new property launches,” according to a report by real estate firm The Corcoran Group. “First Quarter 2015 was certainly no different and only continued to follow the trends already in place. Every Brooklyn neighborhood, from Greenpoint to Sheepshead Bay, is experiencing many, if not all, of these market dynamics.”