NEW YORK CITY—The Kalikow Group—in a joint venture with BenHaghani and Misha Haghani of Steelpoint Property Group—has acquired517 2nd Ave. for $5.1 million from Rana Associates, GlobeSt.com haslearned EXCLUSIVELY. The four-story, pre-warbuilding features a ground floor restaurant and vacant apartmentson the second, third and fourth floors.

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The asset features a number of selling points—including itspurchase price—that made it too good to pass up, Edward Kalikow,president and CEO of Kalikow Group, tells GlobeSt.com.

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“The building has approximately 10,000 square feet of airrights, so whether we want to work on developing the existing siteor put together an assemblage, we can sit and evaluate our optionswhile we're making money on our investment. We will get about a 6%return.”

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Also, he continues, “The Kips Bay/Gramercy neighborhood is upand coming so it presented an opportunity to buy a property at areasonable price. Instead of chasing a deal that's valued at $700to $800 per square foot, we're paying about $350 per squarefoot.”

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The building's units are not rent regulated, so the new ownersplan to renovate the vacant apartments and then put them on themarket, Kalikow says. It sits in Manhattan's Kips Bay/Gramercyneighborhood, close to major subway and bus lines, the FDR Drive,NYU Langone Medical Center and a variety of restaurants, loungesand retail venues.

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Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.