James Nelson, managing partner at Massey Knakal, tells GlobeSt.com the current owner acquired 84-86 Bedford St. in October 2004 for $6.9 million and has since subdivided the properties. The owner, which he declined to disclose, is deciding to take advantage of market conditions and sell 86 Bedford, he adds. Nelson is exclusively representing the owner.
One of the city's oldest bars, Chumley's, operates on the first floor. The bar opened in 1922 and holds a long-term lease through 2086. In addition, of the three rental units above, two are free market and one is occupied by a rent-stabilized tenant, according to Massey Knakal.
Nelson explains that there are "very few comparables in the area" because of the long-term lease. He says the property carries a return around 6%, while the market is seeing a lot of investment properties trading for less. "This is a long-term investment," he says, adding the property has already generated a lot of interest.
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