NEW YORK CITY—The Kalikow Group—in a joint venture with Ben Haghani and Misha Haghani of Steelpoint Property Group—has acquired 517 2nd Ave. for $5.1 million from Rana Associates, GlobeSt.com has learned EXCLUSIVELY. The four-story, pre-war building features a ground floor restaurant and vacant apartments on the second, third and fourth floors.
The asset features a number of selling points—including its purchase price—that made it too good to pass up, Edward Kalikow, president and CEO of Kalikow Group, tells GlobeSt.com.
“The building has approximately 10,000 square feet of air rights, so whether we want to work on developing the existing site or put together an assemblage, we can sit and evaluate our options while we're making money on our investment. We will get about a 6% return.”
Also, he continues, “The Kips Bay/Gramercy neighborhood is up and coming so it presented an opportunity to buy a property at a reasonable price. Instead of chasing a deal that's valued at $700 to $800 per square foot, we're paying about $350 per square foot.”
The building's units are not rent regulated, so the new owners plan to renovate the vacant apartments and then put them on the market, Kalikow says. It sits in Manhattan's Kips Bay/Gramercy neighborhood, close to major subway and bus lines, the FDR Drive, NYU Langone Medical Center and a variety of restaurants, lounges and retail venues.
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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.
