NEW YORK CITY-Underscoring the current, super-strong state of Manhattan retail, a retail condominium on the Upper West Side consisting of four retail units has sold for $50 million.
The seller, ALTO Private Investments nearly doubled its investment in 200 West End Ave., which it purchased with the Klein American Group in 2011 for $31 million. The identity of the buyer was not available at press time.
The retail property, totaling 25,000 square feet, is located on the ground floor of the luxury condominium at 70th street and West End avenue. At the time of ALTO's purchase, the complex was leased to CVS for 13 years. Following the acquisition, ALTO signed three additional tenants each with 15-year leases, increasing occupancy and rental revenues by 40%.
“Two years after the acquisition and with the improvements we instituted, we sold the property at a gross return of almost three times our original equity investment,” says Mody Kidon, ALTO chairman and co-founder. “This is our fifth exit in the last two years with an average 30% IRR.”
ALTO focuses on the acquisition of value-added commercial properties in major cities in the United States. The company has invested in 14 commercial properties totaling 1.8 million square feet and valued at $285 million.
ALTO is currently raising its second fund targeting $100 million of equity and $500 million of commercial real estate investments. ALTO is targeting investments in cities including Los Angeles, Miami, Houston, Chicago and Seattle.
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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.
