NEW YORK CITY-The six-story, 42-unit building at 1090 St. Nicholas Ave. in Washington Heights has been sold for $8.9 million.

Marcus & Millichap, which brokered the deal, reported the sale. The firm notes that the buyer, an unnamed local investment firm, will continue to operate the property as a residential building.

Most of the units at the building are rent subsidized. The Metropolitan Center for Mental Health, which leases space in the basement level, will be retained, the company states.

“The buyer was drawn to this property because of its proximity to the hospitals, which are just around the corner,” says Marcus & Millichap’s Peter Von Der Ahe, who brokered both sides of the transaction with Scott Edelstein and Sean Lefkovits. “It’s a great play on their part–there will eventually be upside in the residential units and the large commercial space that’s already leased out to the medical group provides them with a healthy chunk of stable income.”

See story in the Commercial Observer.