NEW YORK CITY-Just a week after closing the sale of a multifamily property in the West Village, Marcus & Millichap Real Estate Investment Services has done a handsome $10.8 million deal—with the same buyer—on a mixed-use property in the neighboring Chelsea area, GlobeSt.com has learned EXCLUSIVELY.
Marcus & Millichap has arranged the sale of 256 W. 15th St., between Seventh and Eighth avenues. The building features 22 apartments and two retail units. Peter Von Der Ahe, first VP, investments, Joe Koicim, VP, investments, and Sean Lefkovits, senior associate, represented the seller, a private Manhattan-based commercial real estate development firm. The buyer is a private investor.
The price, which equates to $447,917 per unit, reflects the strong upside potential of such a property, Koicim tells GlobeSt.com. “For the most part, people feel rents will continue to grow, especially in the West village and Chelsea,” he says. “Buildings like these, which are completely renovated walkups that are commanding high rents per square foot, bring in a cap rate driven buyer versus a value-add buyer.”
“The building's location and turnkey nature sparked a great deal of interest from the investment community,” says Koicim. “We conducted 32 property tours and received 13 qualified offers from investors ranging from 1031 exchange buyers to investors with foreign capital.”
Situated across the street from Google's headquarters, Marcus & Millichap received all sorts of offers, Koicim notes, but in the end, the offer that came in was too good to refuse. “We had interest from people who wanted to net lease the bulding to Google," reports Koicim, "but we had three deals on the table and this exchange buyer stepped up with the best price and terms.” Those terms included a 10% deposit, quick closing, due diligence before signing and a hard contract right from the beginning, among other offerings.
The property is located two blocks from the High Line, just steps from the entrance to the A, C, E and L subway lines at 14th Street and one block from the 1,2 and 3 lines. The building is approximately 25 feet by 88 feet and is situated on a 25-foot by 103-foot lot. The R8B-zoned property features 14 free market units, 13 of which have been fully renovated to a luxury standard. The unit mix includes two studios, 18 one-bedroom units and two two-bedroom apartments.
At 48 Bedford, the same exchange buyer stepped up after the property received 17 tours and eight written offers. It was purchased just a year earlier, by Benchmark Real Estate Group and had been repositioned.
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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.
