KKR teams up with Dalan on big Brooklyn multifamily buy. Contract price for 14-building portfolio is $860M

KKR teams up with Dalan on big Brooklyn multifamily buy

Contract price for 14-building portfolio is $860M

TRD New York August 07, 2020 12:00 PM

Private equity giant KKR is teaming up with Dalan Management to buy the big Bruman Realty multifamily portfolio in Brooklyn.

The alternative asset manager is providing the bulk of the equity for the deal, Bloomberg reported. The contract price is $860 million, according to the outlet.

The Real Deal first reported two weeks ago that Dalan was in contract to buy the 14-building portfolio from Joseph Brunner and Abe Mandel’s firm. But sources at the time said the price was significantly higher, around $1.25 billion.

Brunner and Mandel are among the biggest landlords in Brooklyn, while family-run Dalan owns about 1,500 apartments throughout the city.

The portfolio consists of buildings constructed in recent years under the city’s 421a tax abatement program. It spans 1.5 million square feet and includes roughly 1,275 residential rental units. The largest property in the portfolio is 260 Gold Street, a 286-unit rental tower in Downtown Brooklyn.

Sources familiar with the deal previously told TRD that Bruman put the portfolio on the market late last year. It’s one of the biggest multifamily trades in the borough to date. [Bloomberg— Rich Bockmann 

This story has been updated with further information about pricing.

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