Landlord Tops 340 Units

Note: This article has been substantively updated since its first publication, now with an interview with Brodie about his background and investment strategy.

A 33-year-old, Monsey, N.Y.-based landlord bumped his local apartment holdings up to 347 units with the recent purchase of eight two and three-family homes in Fair Haven, the Hill, West River, and Westville.

That’s 347 more than when he started out in real estate a decade ago, when he first learned about investment opportunities in New Haven through a chance encounter at a gym in upstate New York.

The landlord, Barnett Brodie, is the man behind Reichman Brodie Real Estate.

According to the city’s property records database, on May 7, Brodie’s company paid a total of $1.84 million to Juan Salas-Romer of NHR Properties for a two-family house at 114 Lloyd St., a three-family house at 89 Ward St., a three-family house at 85 Ward St., a three-family house at 47 Stanley St., a three-family house at 15 Irving St., a three-family house at 25 Stanley St., a three-family house at 41 Blake St., and a three-family house at 209 Blake St.

The eight buildings, which were last appraised by the city at an aggregate value of $1.51 million, contain a total of 23 apartments.

An earlier version of this article noted that Reichman Brodie Real Estate has spent a total of $12.01 million purchasing 76 buildings containing 205 apartments in the city since 2012. Thirty-one of those buildings and 78 of those apartments are in Fair Haven. Thirteen of those buildings and 35 of those apartments are in the Hill. Six of those buildings and 20 of those apartments are in Newhallville. And the rest are spread between West River, Beaver Hills, Cedar Hill, and other city neighborhoods.

Below is a map of those properties.

Brodie reached out to the Independent following the initial publication of this article and noted that his actual holdings in the city are significantly larger than 200 units. They’re more like 346 units. In addition to buying and managing properties under Reichman Brodie Real Estate and the LLCs Hanna Grey and and ER Holdings, his company also uses the LLC names BBYM DE, Riley Group, RBC DE, Sperry Group, TZ DE, James P DE, Bailee Group, YG Capital, R&S Equity LLC, Farren Moishe, and BG13 Properties.

“My goal has been exclusively to provide a top quality experience for my tenants,” he told the Independent in a phone interview Wednesday afternoon. ​“My agenda is not something to make money. My agenda is for my tenant to profit through having a quality place to live. Only by doing such do I want to profit from that labor.”

“Supply And Demand Supersedes All”

Brodie said he first came to invest in New Haven real estate soon after the financial crash at the end of the 2000s.

He was just 24, still living at home in upstate New York, and had no idea what he wanted to do with his life. He had never worked in real estate before, but started googling around to see which cities had opportunities for real estate investment.

After looking at available properties in city after city after city, he finally stumbled upon New Haven … through a chance encounter at a West Nyack gym with someone who happened to be a property manager in New Haven.

The man introduced Brodie to the New Haven market. Hundreds of apartments later, Brodie is now one of the largest private landlords in the city.

He said he currently doesn’t have a single vacancy in any of his properties. In fact, he said, he has a wait list. He said that’s because tenants know that he invests thousands of dollars into improving properties in Fair Haven, the Hill, West River, and elsewhere, and doesn’t jack up the rent.

“The law of supply and demand, the law of the marketplace, supersedes all,” he said. ​“You create a product that people want, and people will take it.”

He said he spends $1,500 on granite countertops rather than $200 on formica. He also said he pays for hardwood flooring rather than carpeting. Tenants respect buildings that are safe and clean and affordable, he said. Their lives are better, and he gets the satisfaction of providing a quality product.

“I’m of the firm belief that, if you live in a clean, healthy, nice environment,” he said, ​“it will have a psychological impact on your well-being. It will create a better life.”

He recalled one Fair Haven tenant whose gas line had to be replaced earlier this spring. The tenant didn’t have gas for three weeks, he said. Brodie said he promised the tenant he wouldn’t have to pay any rent during that time period, then pro-rated his rent bill after the gas had been restored.

“It’s personal ambition,” he said about why he invests so much in apartments while rarely charging more than $1,000 rent. ​“I love providing.”

He was asked about local concerns that large out-of-state property management companies transfer wealth out of city resident’s hands and into the pockets of people who live elsewhere. He said that’s simply how the market works.

“I feel that limiting the investor base to only locals would be a tremendous negative,” he said. ​“The law of supply and demand supersedes all logic at all times. It’s been proven time and time again.”

Brodie’s company’s website says that the firm was ​“founded as a real estate investment company with a focus on the development and management of luxury rentals in the greater New Haven region. Today, we are known for our high-quality rental options and attentive management style. Renters appreciate the impressive rental options we provide, while property owners look to us for comprehensive management solutions.”

Besides a single lead paint abatement order that the Health Department issued to Brodie in April 2014 for hazards found at 337 Winthrop Ave., Brodie hasn’t been cited by the city for any other building, health, or housing code violations, according to the land records database. The health department released Brodie from the April 2014 lead hazard abatement order in February 2015.

Brodie said that sole lead paint abatement order came in relation to a lengthy dispute with a tenant who he said refused to move into another one of his apartments, even as he wanted to abate the lead. Ultimately, he said, he paid for her hotel stay while he abated the property.

NHR Continues Smaller Residential Divestment

Salas-Romer said his company made these eight recent two and three-family-home sales to Brodie as part of its strategy of divesting some of its smaller residential holdings so that it can focus on larger projects like the New Heights in Fair Haven Heights.

“Barnett Brodie and I have known each other for several years and get along well,” Salas-Romer told the Independent. ​“When he meets my price, we proceed on selected transactions that are a win/win.”

Since 2016, NHR has sold 19 buildings containing 57 units to Brodie for over $4 million, according to the city land records database.

At the end of last year, NHR owned around 250 apartments throughout the city. Pike International-affiliated companies controlled around 750. Mandy Management-affiliated partnerships, which own many hundreds of apartments in the city, bought 170 units last year alone.

In 2016, Ocean Management affiliates owned around 500 apartments in New Haven.

Previous property sale coverage:

• High Street Apts Sell For $25M+
• St. Michael’s School Sold, For Apartments
• Ocean Management Acquires Perrotti Westville Properties
• Paris Realty Picks Up 6 Q Meadows Condos
• Landlord Boosts West River Condo Holdings
• $21 Million Changes Hands In 2 Days
• 50 Factory Jobs Coming To Fair Haven
• Brendan Towers Sold For $6M+
• Investors Drop $917K On West Side Condos
• Mandy’s 2018 Buying Spree Nears $13M
• Mandy Empire Buys Up The Block
• Roots Planted In Newhallville
• Latest Sales: Mandy Buying Spree Continues
• Latest Sales: Mandy Expands In City Point
• Latest Sales: East Rock Home Buy Tops $1M
• Latest Deals: Beulah’s 5th Rehab On Block
• Latest Sales: NHR Sheds Small To Focus Big
• Latest Sales: Mandy Buys In Heights
• Home Sale Price Doubles In 13 Years