TransWorld was similarly satisfied with the deal as a good investment. "The purchasers felt that the existing free market rents were well below market," says Peter DeCheser. "Based on the price of $5,800,000, the going in cap rate to the purchaser was 7% but, given current market projections for the free market apartments, a significantly higher return could be obtained within one year." According to Massey Knakal, the building produces a current gross rent of $552,000 with a current net operating income of $329,000.
In April, TransWorld paid $1 million for a lease with an option to buy the 13-story property, located on the south side of John Street between Broadway and Nassau Street. The building contains three ground-floor retail spaces, all under 10-year leases, Peter DeCheser tells GlobeSt.com. All 18 apartments: 6 IMD and 12 free-market units, are occupied.
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