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TransWorld to Exercise Purchase Option on 13-Story Downtown Property

NEW YORK CITY-The 18-unit, 88,000-sf building has been in Mark Shenker's family for years, but is now being sold for $5.8 million as TransWorld Corp. exercises its option to purchase based on an initial lease-signing in April.

By Michael Gilliard | Updated on September 26, 2002

NEW YORK CITY-TransWorld Corp. will exercise the option to buy the 88,000 sf mixed-use retail and multifamily building at 12-16 John St. for $5.8 million. The all-cash transaction is expected to close “within the next couple of months,” says Peter J. DeCheser, who along with cousin Michael DeCheser brokered on both sides for Massey Knakal Realty Services. Mark Shenker, whose family has owned the Lower Manhattan property “for years,” agreed to the sale “because now was a good time, and the price was right,” Peter DeCheser tells GlobeSt.com.

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.

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