NEW YORK CITY-Massey Knakal has announced that the Bowery Portfolio—consisting of 11 mixed-use properties located between Houston and Canal Streets on the Bowery—was sold in an all-cash transaction valued at $62 million to an investor group led by Joseph Betesh of Milestone Equities. The firm specializes in the acquisition of owner occupied real estate under long-term triple net leases.
The newly purchased properties are located at 83, 85, 88, 103, 105, 219, 221, 262, 276, 280, and 284 Bowery.The buildings total approximately 143,230 above grade square feet with all air-rights intact. The properties are not contiguous, but nine of the 11 buildings are paired with an adjacent property. Included in the portfolio is the Pulino's bar and restaurant on the corner of East Houston Street and Bowery, across from a new Whole Foods development.
These properties have been family owned since the 1930s, presenting Milestone Equities with a rare opportunity for Milestone Equities to acquire a portfolio with tremendous upside, according to the announcement.
“This was truly a team effort and the clients were ecstatic to sell at a time when real estate values and upside potential are at their greatest,” says John Ciraulo,vice chairman, who exclusively represented the seller, a family trust, in this transactionwith Michael Azarian, director of retail leasing, Robert Burton, SVP of sales, and Michael DeCheser, first VP of sales.
Once considered an unsavory part of town, the Bowery has become hip and chic following an influx of nightlife and dining over the last decade. High-end residents and retailers are continuing to come in following relocation from neighboring Soho and Nolita, the release notes.
“When the New Museum decided to open at 235 Bowery in 2007, the transformation of the area became firmly established,” notes Burton. Adds DeCheser, “The Bowery properties arguably fall within the epicenter of three converging neighborhoods, with a common vein of tourism and strong retail.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
