(Read more on the multifamily market.)
NEW YORK CITY-FGF Enterprises Corp. has sold an eight-story elevatored loft building at 264 Water St.--a cobblestone street in the South Street Seaport Historic District--in an all-cash transaction valued at $22 million. The buyer was local based investor, Night Sky Holdings, a source close to the deal confirms to GlobeSt.com.
The buyer plans to upgrade the 48-by-130 apartments and hold the asset long term, the source explains. The property is located on the west side of Water Street between Dover and Peck Slip--a pedestrian park is planned for Peck Slip, the former Fulton Fish Market parking lot. It contains 27 oversized luxury apartments over approximately 41,278 sf, above grade. The units are all occupied and range in size from 910 sf to 1,860 sf.
The transaction occurred at a cap rate of 3.8% and sold for $532.97 per sf. The source tells GlobeSt.com that the approximate rent roll at the time of closing was $1.3 million per year. "The expenses were approximately $450,000," the source explains. "The approximate Net Operating Income was $830,000."
The source explains that the transaction was the highest gross rent multiple ever paid for a free market apartment building in the Financial District/South Street Seaport, at over 17 times the gross rents. The source believes that the trend will continue.
"This location is on fire," notes Massey Knakal Realty Services broker Michael DeCheser, who exclusively represented the seller. "Sadly the purchaser of this property lost his business in the 9/11 tragedy, but five years later, invested the settle proceeds back into the building. The Seaport is an incredible place filled with richness, diversity, architecture and historical significance. It seems only fitting that more and more people are discovering it." Massey Knakal was the sole broker.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
