The five-story 94-foot by 89-foot property at the northeast corner of 92nd St. and 37th Ave. contains 46 units--three studios, 35 one-bedrooms and seven two-bedrooms--and six stores over approximately 41,830 sf. The building is two blocks from Roosevelt Avenue and Junction Boulevard near shopping and the 7 subway line.
Massey Knakal broker Swain Weiner tells GlobeSt.com that the buyer is Queens-based investor, Clearview LLC. He explains that Clearview was attracted to the combination of retail and residential "in a thriving area of Jackson Heights." The seller he notes, is Blue Star LLC, and is selling the property because "he is an active investor."
The transaction, which Weiner says had more than 20 offers, occurred at a capitalization rate of 7.06%. The property sold for $184.08 per sf. He notes that the property is a "great piece in an area that only grows in population. The buyers will work on improvements in the building and subtely increase the top line revenue stream."
Weiner, who represented the sell with broker Kenneth Hillman, says that "apartment buildings continue to be the most desirable property type in the market today. Investors jumped at this opportunity. We were able to maximize the sale price and terms for the contract with a sit down signing during the contract phase."
[IMGCAP(2)]The six-story, 92-foot by 153-foot property at 86-11 Whitney Ave. is located at the northeast corner of Whitney Avenue and Macnish Street. It consists of 90 units broken down into 90 units--17 studios, 48 one-bedrooms, 24 two-bedrooms and a super's unit. It also features twin elevators and an indoor parking garage for 19 vehicles.
Weiner, who exclusively represented the seller, David Greene, tells GlobeSt.com that this was a family-owned property and "the seller was retiring from the business." He notes that there were 25 offers and the buyer, Westchester investor, Wassermann LLC, was interested in the mint condition, as well as the location of the property. "This sale demonstrated that a good product will sell with a strong price in any economic environment," he says.
The transaction occurred at a capitalization rate of 4.37%. The property sold for $134.98 per sf. A block and a half from Broadway, the property offers everything in a neighborhood that is only expected to continue growing, he says.
In a Q2 question and answer session, Massey Knakal chairman Robert Knakal, says that multifamily properties remain in highest demand "given their artificially below market rent levels due to rent regulation. They are also easiest to finance." He did note, however that the biggest question for this sector is how legislation is going to affect regulation. "The political horizon is likely to change fundamentally in November and these changes will undoubtedly make things more challenging for landlords."
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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.
