NEW YORK CITY—Continuing its busy streak, Madison Realty Capital has purchased of 361 East 50th Ave. in an off-market transaction valued at approximately $40 million. Aaron Jungreis of Rosewood Realty Group represented both the buyer and seller in the transaction.
The 55,501-square-foot mixed-use property has been family-owned by the seller since it was first built in the 1940s. The six-story building includes 43 residential units, seven commercial units and an additional 45,549 square feet of air-rights for further residential development.
It also features 85 feet of frontage along East 50th street along with 150 feet of frontage along First Avenue. The property had a number of vacant units at close, making it ideal from a repositioning standpoint, MRC officials note.
The company plans to pursue an intensive capital expenditure program to reposition and modernize the property, which will include renovating several residential units into high-end apartments, enhancing overall curb appeal and improving operating efficiency.
“This property is a high-quality, cash-flowing asset with considerable repositioning potential, all within an attractive residential and commercial neighborhood,” says Josh Zegen, co-founder and managing principal. “Plus, there is additional upside given the value and development potential of the air-rights. The trendy Midtown East submarket has seen considerable growth recently with several high-end residential condos currently in progress along First and Second Avenue, along with the addition of numerous upscale restaurants and specialty shops that have enhanced the neighborhood's appeal. The area also benefits from its proximity to midtown, yet still remains a more affordable option for buyers compared to some other Manhattan locales.”
The residential unit mix consists of several large studio, one-bedroom, and two-bedroom apartments as well as a five-bedroom, five-bath penthouse on the top floor. The commercial space is 100% occupied and features six street level retail units with storage space in the basement and one office on the second floor.
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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.
