"Based on the number of existing market rate units--approximately 57%--the property could begin the conversion process immediately, although the new owners will likely operate it as a high-end rental," Ezratty explains. "The stores along First Avenue, which comprise 9,700 sf, are 100% occupied at an average rent of $75 per foot, well below market. So there's terrific upside for the new owner to increase retail rental rates, and convert the building to condominiums according to market demand or operate it as a high-end rental building."
Ezratty adds that "Stonehenge competed for the property and won by being aggressive and nimble, acting quickly to secure this excellent residential opportunity." The buyer will benefit when leases on the market-rate apartments and regulated units expire.
The building is situated near the east side hospitals, the prime retail area surrounding Bloomingdales and is in walking distance to Midtown's Plaza District. According to Eastern Consolidated chief economist Barbara Byrne Denham, "this transaction validates how insulated the Upper East Side real estate market is from the current climate affecting Wall Street. Other buyers showed a serious interest in the property but Stonehenge acted more aggressively and was fueled by its recently closed $500-million investment fund which enabled it to buy 360 E. 65th St. with an all-cash offer. Liquidity of that magnitude is extremely rare given the current credit-squeezed investment environment."
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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.
