NEW YORK CITY—Continuing its busy streak, Madison Realty Capital has purchased of 361 East50th Ave. in an off-market transaction valued atapproximately $40 million. Aaron Jungreis of Rosewood RealtyGroup represented both the buyer and seller in the transaction.

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The 55,501-square-foot mixed-use property has been family-ownedby the seller since it was first built in the 1940s. The six-storybuilding includes 43 residential units, seven commercial units andan additional 45,549 square feet of air-rights for furtherresidential development.

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It also features 85 feet of frontage along East 50th streetalong with 150 feet of frontage along First Avenue. The propertyhad a number of vacant units at close, making it ideal from arepositioning standpoint, MRC officials note.

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The company plans to pursue an intensive capital expenditureprogram to reposition and modernize the property, which willinclude renovating several residential units into high-endapartments, enhancing overall curb appeal and improving operatingefficiency.

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“This property is a high-quality, cash-flowing asset withconsiderable repositioning potential, all within an attractiveresidential and commercial neighborhood,” says Josh Zegen,co-founder and managing principal. “Plus, there is additionalupside given the value and development potential of the air-rights.The trendy Midtown East submarket has seen considerable growthrecently with several high-end residential condos currently inprogress along First and Second Avenue, along with the addition ofnumerous upscale restaurants and specialty shops that have enhancedthe neighborhood's appeal. The area also benefits from itsproximity to midtown, yet still remains a more affordable optionfor buyers compared to some other Manhattan locales.”

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The residential unit mix consists of several large studio,one-bedroom, and two-bedroom apartments as well as a five-bedroom,five-bath penthouse on the top floor. The commercial space is100% occupied and features six street level retail units withstorage space in the basement and one office on the secondfloor.

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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.