29-28 41 Street.
NEW YORK CITY– DSA Property Group, a New York City-based property manager and developer, has acquired a 96,450-square-foot multifamily property in Long Island City for $47 million, or an estimated 500 per square foot. Meridian Investment Sales arranged the transaction.
The 100 percent free-market property is located in the center of Queensboro Plaza. Comprised of 115 apartments, the sale had a capitalization rate of 5.1% and a multiple of 13 times the annual rent roll. "Properties of this scale and caliber don't often trade in New York," said Meridian's Jonathan Shainberg, who represented the seller and longtime New York Real Estate investor Jack Guttman, in a prepared statement.
GlobeSt.com recently reported on the appetite for free market multifamily assets, which has grown tremendously since the New York State Legislature enacted rent regulation in June curbing investment on rent-stabilized assets.
"One of the most attractive features of the deal is the ability to buy in above a 5% cap rate and still be able to raise existing rents 15-20%. Market rents in this neighborhood can be as high as $60 PSF," Shainberg said.
Located at 29-28 41st Avenue, the property was gut renovated in 2015 and has the further capacity for reconfiguration to increase cash flow with its industrial loft-style apartments, according to Adan Elias Kornfeld of Meridian.
Units feature hardwood floors, stainless steel kitchens, marble-tiled bathrooms, high ceilings and oversized windows. Building amenities include concierge services, a free gym, movie room, laundry room, lounge with LED TV's, pool and poker tables. Green Desk, the property's flex office space, spans 7,600 square feet on the ground floor.
Nearby transportation includes the 7, N, W, E, M & R subway lines at the Queens Plaza station.
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Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
