180
East 72nd Street
Interest in Cash Flowing Air Rights Lease and Building for Sale
180 EAST 72ND STREET NEW YORK, NY 10021
Interest in Cash Flowing Air Rights Lease and Building for Sale FOR SALE
Asking Price: Ownership Requests Offers
PROPERTY DESCRIPTION Cushman & Wakefield has been retained exclusively to sell the fee position and/or the air rights lessor position at 180 East 72nd Street. The property is subject to a ground lease that expires in August 2036. The building and all of its air rights were leased in 1961 to the developer of 190 East 72nd Street, an adjacent 34-story, 132-unit cooperative apartment tower known as Tower East. Included in the ground lease, the building at 180 East 72nd Street was subleased back to the fee holder, The Provident Loan Society, for one ($1.00) dollar per annum. The purpose of this structure is to allow the developer of Tower East to use the air rights, while granting Provident the ability to continue to occupy their building and collect rent from the air rights. Upon the expiration of the ground lease, full ownership of the fee position for 180 East 72nd Street, (the building and all of the air rights) will revert back to the fee owner, currently The Provident Loan Society.
Location:
Located on the south side of East 72nd Street between Lexington and Third Avenue
Block / Lot:
1406 / 43
Lot Dimensions:
20’ x 102.17’
Lot Size:
2,043
Building Size:
20' x 90'
Stories:
1 plus basement
Ground Floor:
1,800
(approx.)
Mezzanine:
500
(approx.)
Gross Square Footage:
2,300
(approx.)
Zoning / FAR:
R10A / 10.0
Total Buildable Sq. Ft.:
20,434 (approx.)
The ground lease provides for a periodic adjustment of the rent based upon an appraisal of 8.33% of the unencumbered land value of 180 East 72nd Street. The current annual rent is $135,000 and adjusts on May 1st of every 10-year anniversary. The period in which either party is to give notice to the other party requesting an appraisal of the unencumbered land value is between 3 and 6 months prior to the expiration of the last rent period. The last rent adjustments were made in 1977, 1987 and 1997. The 2007 reset was missed and the next rent adjustment dates would be May 1, 2017 and May 1, 2027 with the lease term expiring on August 31, 2036.
Development Rights:
18,134 SF(approx.)
Historic District:
No
Landmark Designation:
None
Assessment (15/16) :
$472,748
Taxes (15/16):
$50,508
Current Lease Payment:
$135,000 per annum*
Ownership requests proposals for:
* In May 2017 the new rent will be calculated using 8.33% of the unencumbered land value.
TAX MAP 1406/43
Tower East Co-op
• Interest in the building located at 180 East 72nd Street • Interest in the air rights lease position which generates substantial cash flow • Interest in the full position: building and leased air rights (with cash flow)
Third Avenue
East 72nd Street Lexington Avenue
This opportunity allows buyers to purchase the property and/or the lessor position of 180 East 72nd Street. This is an excellent opportunity for investors to place long-term capital into a stable, well positioned real estate investment. This offering not only benefits from the income stream, but also includes the building at 180 East 72nd Street which lends itself to a multitude of retail, residential and commercial uses. Purchasers will also realize substantial gains in cash flow in the short run due to the substantial escalation in rent resets coming due within the 1st year of ownership.
(approx.)
East 71st Street
FOR MORE INFORMATION, PLEASE CONTACT: Guthrie Garvin
John F. Ciraulo
Craig M. Waggner
Michael Gembecki
Senior Vice President of Sales (212) 660 7786
[email protected] Vice Chairman (212) 660 7700
[email protected] Director (212) 660 7744
[email protected] Associate Director (212) 660 7743
[email protected] Cushman & Wakefield 275 Madison Avenue 3rd Floor New York, NY 10016 (212) 696 2500
Cushman & Wakefield Copyright 2015. 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.