Alpaca Real Estate Recapitalizes The Axel in Brooklyn for $300M

Author

Slice of Real Estate Team
October 18, 2024

Key Highlights:

  • Alpaca Real Estate recapitalizes The Axel, a 97% leased, 29-story, 284-unit Class A property in Brooklyn.

  • Transaction valued at approximately $300M, signaling strong confidence in Brooklyn’s multifamily market.

  • The Axel's prime location near Barclays Center and 13 subway lines enhances tenant appeal.

  • High-quality tenants include Maimonides Hospital System, Chick-fil-A, and Hounds Town.

  • Community amenities include a saltwater pool, rooftop terrace, fitness center, and conference spaces.

Notable Quotes:

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“We are thrilled to partner with Alpaca Real Estate on a fantastic asset that we have been involved with for over a decade.”

Jeffrey Gershon, Founder at Hope Street Capital
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“Alpaca’s thematic approach focuses on properties with strong tailwinds...we are proud to partner with him on it going forward.”

Daniel Carr, Managing Partner at Alpaca Real Estate

Our Take:

The recapitalization of The Axel, a $300M transaction by Alpaca Real Estate, underscores the sustained demand for multifamily assets in prime Brooklyn neighborhoods. The property’s 97% lease rate, coupled with its high-quality tenant mix and excellent location near critical transit lines, positions it as a premier asset in the growing Brooklyn market. This move by Alpaca demonstrates its focus on leveraging urban growth trends, especially in gateway cities like New York, where housing demand remains strong and vacancy rates low. The addition of commercial tenants like Maimonides Hospital further enhances the property’s value as a multifaceted urban asset.