United Realty Trust Inc has become contractually bound to close on an agreement with Tilden LLC to acquire a fee simple interest in Tilden House, a property located at 2520 Tilden Avenue in Brooklyn, NY, according to regulatory filings.
The purchase price for the Property is $22.25 million, exclusive of brokerage commissions and closing costs. The property was being offered for $23.75 million, according to a besenassociates.com listing, at a 9.5% capitalization rate, and $277 per square foot. The property was being offered at less than replacement cost.
Tilden House is a nine-story residential building, completed in 2007, with 117 apartments, community facility space and indoor and outdoor parking, comprising approximately 86,360 rentable square feet.
The property is leased to Highland Park Community Development Corporation under a 25-year net lease. The tenant has an option to cancel the lease at the end of the fifteenth and twentieth years of the term.
Highland Park Community Development Corp has a services agreement with the New York City Department of Homeless Services to provide transitional housing for families in need. The Department pays to reimburse Highland Park Community Development Corp for 100% of its approved costs, including the payment of rent. The rate cannot exceed 100% of the Tenant’s annual budget.
Highland Park Community Development Corp currently pays $2,319,000 annually in base rent, which increases every three years. The services agreement extends through June 30, 2013, and the Company expects that it will be renewed through June 30, 2014.
United Realty said it anticipates closing on or before March 31, 2013, or as soon as financing is arranged with a lender.