GlobeSt.com exclusively learned that the continuous five-story walk-up buildings were going on the market in September. Locally based Eastern Consolidated's vice chairman Brian Ezratty, senior director Deborah Gutoff and director Martin Ezratty represented the seller, who had owned and operated the properties for the past 25 years. Gutoff together with Eastern Consolidated senior director Azita Aghravi procured the buyer.
"A number of factors drove this sale," explains Gutoff, "one of the most significant was the property's stellar location, literally blocks from the designer stores on Madison and trendy restaurants on Second and Third Avenues. It's rare to be able to acquire such a four-building package on the Upper East Side. Consequently, the offering generated more than two dozen bids, but the winner succeeded by presenting very aggressive terms."
Ezratty explains that "there is no doubt that property values anywhere near the new Second Avenue subway will increase once it is completed in 2011, and this site is in close proximity to one of the entrances of the new subway at Second Avenue and 72nd Street." For the immediate future, the buyer will continue to operate the properties as they are, upgrading them when leases expire in order to release at significantly higher rents.
The property consists of 32 rent stabilized apartments, four rent controlled and 13 free market. As for retail, there are eight commercial stores, five of which are located on Second Avenue. The average rent is $1,237, or $34 per sf, which sources is well below market rates. The source further notes that a comparable rate for studios of that size in the area is between 1,700 and $2,000.
Additionally, the property was sold with 48,975 sf of air rights that eventually can enable the new owner to build a ground-up residential development of approximately 82,120 sf with as much as 16,424 sf of commercial space. According to Aghravi, "the buyers were keen to own a package of Upper East Side corner properties, they were pleased to acquire a site that had not changed hands for more than 25 years, and they realized that the Second Avenue subway would enhance values of both the retail and residential components."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, 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.
