The 26-story office tower at 1900 Flatbush Avenue is in contract to sell for $190 million this week, just as Manhattan’s uptown leasing market slows to a crawl, according to multiple brokers with knowledge of the deal.

Buyers led by Isaac Dwek, a prominent Borough Park developer, signed the contract on Tuesday for the 26-story 1980s office tower at 1900 Flatbush Avenue in Midwood. According to three people involved in the negotiations, the agreed price sits just below the $192 million appraised value reported last quarter by JLL.

This surprise deal comes as uptown Manhattan’s office market hits a soft patch. CBRE reports a 27% drop in leasing activity along Madison Avenue in June versus last year, a trend confirmed by local firms like MHP Real Estate Services. While Class A spaces above 59th Street sit mostly empty, Brooklyn investors like Dwek are looking south and east for value.

The Flatbush Avenue tower, known for housing branches of CityMD and Brooklyn College’s satellite offices, has kept occupancy above 85% this year. That stability, according to local broker Samira Rahim of Rahim Realty, “lets buyers price aggressively — the crowd chasing uptown addresses isn’t showing up here, which is exactly why this deal’s happening.”

Deal closing is expected by early August, pending final inspection and debt financing. Sources say the new owners intend to keep the building commercial, quelling neighborhood rumors of a residential conversion. The sale marks one of Brooklyn’s largest office transactions of 2024 so far.

Frequently Asked Questions

Who is buying the 1900 Flatbush Avenue office tower?

The buyer group is led by Isaac Dwek, a well-known Borough Park developer who has previously invested in both residential and commercial properties across Brooklyn. Dwek’s group signed the contract this week, with closing targeted for early August 2024.

Why is the sale notable amid a Manhattan leasing slowdown?

The deal comes as uptown Manhattan office leasing, especially on Madison Avenue, has fallen by 27% this June compared to last year. Investors are seeking stable, leased assets in Brooklyn as an alternative to struggling Manhattan properties.

Will the building at 1900 Flatbush Avenue be converted to residential?

No, according to sources close to the buyers, the plan is to keep the 26-story tower as commercial office space. The building’s high occupancy and anchor tenants are seen as key to its ongoing value for new owners.

Frequently Asked Questions

Who is buying the 1900 Flatbush Avenue office tower?

The buyer group is led by Isaac Dwek, a Brooklyn-based developer known for investing in both residential and commercial properties.

How much is the 1900 Flatbush Avenue tower selling for?

The 26-story office tower is in contract to sell for $190 million, just below its $192 million appraised value.

Why is the sale of 1900 Flatbush Avenue significant right now?

The sale is notable because it comes as uptown Manhattan office leasing has dropped 27% in June compared to last year, while Brooklyn assets like this tower remain stable and attractive to investors.

Will 1900 Flatbush Avenue be converted to residential use?

No, sources say the new owners plan to keep the building as commercial office space.

What is the current occupancy rate of the 1900 Flatbush Avenue tower?

The building has maintained over 85% occupancy this year, with anchor tenants like CityMD and Brooklyn College’s satellite offices.

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