NEW YORK CITY-Commanding $729 per-square-foot, two adjacent mixed-use properties in Chelsea were sold to 205 Eighth Ave. LLC for $15.9 million. The buildings, 205 and 207 8thAve., feature 23 apartments, making $691,304 the per unit price in the sale.
Eastern Consolidated senior director Deborah Gutoff, with senior financial analyst Paul Nigido, represented the seller, locally-based Francmen 205 LLC, while Eastern director Gabriel Saffioti brought the buyer, a privately-held multifamily lifestyle development company based in the southwest.
The properties have appeal on multiple fronts, says Gutoff, “They are income-producing, enjoy a prime location close to Flatiron, Meatpacking and Chelsea Piers, and are well-served by public transportation, with subway access at both West 23rd Street and West 14th Street.”
Situated on the west side of Eighth Avenue between West 20th and 21st Streets, the buildings together comprise 21,800 square feet (10,900 each), which breaks down to approximately 8,800 square feet of residential and over 2,000 square feet of retail each. Twelve of the 23 apartments are renovated and command market rents. Of the remaining 11 units, nine are rent-stabilized and two are rent-controlled offering excellent long-term future financial upside.
“The regulated apartments which make up almost half of the units are renting at below market rates, so there is tremendous future financial upside for the buyer,” adds Saffioti.
One of the retail spaces is leased to GNC, the vitamin and supplement store, with seven years remaining on its lease. The second store is occupied on a month-to-month lease.
Attorneys in the transaction were Jody Markman and Andrew Kasman of Markman Law, PC for the seller and Seymour Hurwitz, for the buyer.
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