53-55 First Avenue, New York, NY 2 MIXED-USE BUILDINGS IN THE EAST VILLAGE 22 RESIDENTIAL UNITS & 1 RETAIL UNIT FOR SALE
Asking Price: $18,000,000 Property Features 53 First Ave
Address Location Block / Lot Lot Size Lot SF Stories Building Dimensions Ground Floor 2nd - 5th Floors Gross SF Zoning Residential FAR Commercial FAR Total Buildable SF Air Rights Assessment (16/17) RE Taxes (16/17)
55 First Ave
Total
Midblock on the west side of First Avenue between East 3rd and East 4th Streets 445 / 35 445 / 34 445 / 35 & 34 24' x 100' 24' x 100' 48' x 100' 2,400 2,400 4,800 5 5 5 24’ x 100’ 24’ x 70’ 9,120 R7A / C2-5 4.0 2.0 9,600 480 $634,377 $81,784 NOTE
24’ x 100’ 24’ x 70’ 9,120 R7A / C2-5 4.0 2.0 9,600 480 $752,220 $96,976
48’ x 100’ 48’ x 70’ 18,240 R7A / C2-5 4.0 2.0 19,200 960 $1,386,597 $178,760
All square footages and measurements are approximate.
Property Description Cushman & Wakefield has been retained on an exclusive basis to arrange for the sale of 53-55 First Avenue, two adjacent, mixeduse buildings located in the coveted East Village neighborhood of Manhattan. The two 5 story buildings are situated on the west side of First Avenue between East 3rd and East 4th Streets. Combined, the buildings total approximately 18,240 gross square feet and contain 22 residential apartments and 1 commercial unit. Of the residential units, 9 are currently fair market, 12 are rent stabilized and 1 is rent controlled, ranging in size between studios through 2 bedrooms. As a majority of the units are rent stabilized, future ownership has the opportunity to substantially increase their bottom line and realize the building’s full potential through renovations, vacancy turnovers and deregulation of units. Additionally, the single retail space is owner occupied by H. Brickman & Sons and encompasses the ground floor of both buildings totaling approximately 3,840 rentable square feet. Current ownership is requiring a lease-back of the commercial space with a 20 year term starting at $35,000 per month with 3% increases every other year during the first 20 years. The lease will contain two 5-year renewal options. H Brickman and Sons will also be responsible for 33% of the
increase in real estate taxes over the Base Year July 2017 / June 2018. The company’s origin dates back to the 1930’s when it first opened at 53-55 First Avenue. Since then, Brickman & Sons has expanded with two additional locations in Manhattan illustrating its longlasting success and providing prospective investors with long-term commitment to their space. 53-55 First Avenue greatly benefits from its prime location in the East Village, arguably one of Manhattan’s most desirable residential neighborhoods. Known for its abundant selection of eateries, galleries, clubs, retailers, and nightlife options, the neighborhood attracts a diverse group of residents, further contributing to the continuously high demand for the area. Additionally, the property’s close proximity to the and subway stations provide its residents convenient and accessible transportation options connecting them with all corners of New York City. Overall, the offering presents an outstanding opportunity for investors to purchase an asset within Manhattan’s highly sought after submarket featuring robust in-place cash flow with potential to substantially increase its gross revenue both near term and over time, unlocking the building’s full potential.
For More Information, Please Contact: Robert Knakal
James Nelson
Jonathan Hageman
Patrick Yannotta
Brandon Polakoff
Chairman, NY Investment Sales (212) 660 7777
[email protected] Vice Chairman (212) 660 7710
[email protected] Executive Managing Director (212) 660 7773
[email protected] Director (212) 660 7791
[email protected] Associate Director (212) 660 7755
[email protected] Cushman & Wakefield Copyright 2017. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.
53-55 First Avenue, New York, NY RETAIL RENT ROLL Unit #
Tenant
LXP
Retail
Brickman
9/30/2037
REVENUE Monthly Rent $ 35,000
Annual Rent $ 420,000
In Place
Commercial (20 Year Lease)
$
420,000
Residential - 53 First Avenue (Actual)
$
274,260
*Lease commences immediately upon closing which is assumed to take place towards the end of 3Q 2017. Closing date subject to change.
Residential - 55 First Avenue (Actual)
$
291,900
*The commercial space combines the ground floor of both buildings
Major Capital Improvements
$
3,597
Vacancy & Credit Loss (2%)
$
11,395
Total
$
978,362
*Ownership requires a lease for the commercial space at $35,000 per month *Required lease contains two 5-year renewal options
53 FIRST AVENUE IN-PLACE RESIDENTIAL REVENUE Unit # 1 2 3 4 5 6 7 Total
Size
Status
LXP
2 1 1 1 1 1 1
FM FM FM FM FM FM FM
10/15/2017 1/31/2018 2/28/2018 8/31/2017 8/31/2017 3/31/2018 6/17/2017
Monthly Rent $ 4,900 $ 2,935 $ 3,105 $ 2,935 $ 3,025 $ 2,930 $ 3,025 $ 22,855
Annual Rent $ 58,800 $ 35,220 $ 37,260 $ 35,220 $ 36,300 $ 35,160 $ 36,300 $ 274,260
55 FIRST AVENUE IN-PLACE RESIDENTIAL REVENUE Monthly Rent $ 2,995 $ 431 $ 2,995 $ 1,550 $ 1,800 $ 1,714 $ 2,035 $ 458 $ 1,834 $ 1,955 $ 1,463 $ 764 $ 1,875 $ 1,818 $ 637 $ 24,325
Annual Rent $ 35,940 $ 5,169 $ 35,940 $ 18,600 $ 21,600 $ 20,571 $ 24,420 $ 5,494 $ 22,009 $ 23,464 $ 17,561 $ 9,172 $ 22,500 $ 21,816 $ 7,644 $ 291,900
Major Capital Improvements
$
$
Total Gross Revenue
$ 82,480
Unit # 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 Total
Size
Status
LXP
Studio Studio 1 Studio Studio Studio Studio Studio Studio Studio Studio Studio Studio Studio Studio
FM RC FM RS RS RS RS RS RS RS RS RS RS RS RS
5/31/2017 N/A 10/31/2017 9/30/2017 1/31/2018 4/30/2018 5/31/2018 8/30/2018 10/31/2017 5/31/2017 4/30/2018 7/31/2017 11/15/2017 5/31/2017 5/31/2017
300
EXPENSES
$ / SF
Real Estate Taxes (16/17) - Actual
$
178,760
$
9.80
Insurance (Projected @ $1.00/sf )
$
18,240
$
1.00
Residential Gas & Electric (Actual +3%)
$
10,076
$
0.55
Water & Sewer (Actual +3%)
$
18,937
$
1.04
Repairs (Projected @ $550/unit)
$
12,100
$
0.66
Super (Projected at $400/month)
$
8,800
$
0.48
Management (Projected @ 3% of EGR)
$
29,351
$
1.61
Total Expenses
$
276,264
$
15.15
NOTE
Retail tenant is responsible for their own Gas & Electric.
NET OPERATING INCOME Gross Annual Income
$
978,362
$ 53.64
Less Expenses
$
276,264
$
Net Operating Income
$
702,098
$ 38.49
3,597
15.15
Asking Price: $18,000,000
$ 989,757
For More Information, Please Contact: Robert Knakal
James Nelson
Jonathan Hageman
Patrick Yannotta
Brandon Polakoff
Chairman, NY Investment Sales (212) 660 7777
[email protected] Vice Chairman (212) 660 7710
[email protected] Executive Managing Director (212) 660 7773
[email protected] Director (212) 660 7791
[email protected] Associate Director (212) 660 7755
[email protected] Cushman & Wakefield Copyright 2017. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.
53-55 First Avenue, New York, NY
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Asking Price: $18,000,000 For More Information, Please Contact: Robert Knakal
James Nelson
Jonathan Hageman
Patrick Yannotta
Brandon Polakoff
Chairman, NY Investment Sales (212) 660 7777
[email protected] Vice Chairman (212) 660 7710
[email protected] Executive Managing Director (212) 660 7773
[email protected] Director (212) 660 7791
[email protected] Associate Director (212) 660 7755
[email protected] Cushman & Wakefield Copyright 2017. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.