X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

NEW YORK CITY-The potential sale of Peter Cooper Village and Stuyvesant Town isn’t the only indication of local multifamily’s allure, and while yet another major complex goes on the block, another comes off–both carrying hefty valuations.

The East Harlem Portfolio, a collection of 48 mixed-use and residential buildings in East Harlem, is on the auction block, and sources close to the deal are valuing the property at $250 million. The assets, located on the East Side between FDR Drive and Park Avenue and stretching for 22 blocks north of East 100th Street, have a total of 1145 units. This includes four commercial and three residential condos.

Eastern Consolidated chairman Peter Hauspurg and senior director Marcia Rose Yawitz are marketing the portfolio for owner Steven Kessner of the Real Estate Group. The sale, according to Yawitz, represents the group’s total income-producing assets.

With Harlem housing virtually saturated, says Yawitz–the fruit of its much-touted renaissance–”East Harlem is the next place,” she says. And that means rent potential, she notes. More than 940 units in the complex are rent-stabilized and 42 are rent-controlled, but of the 204 units that are market rent, Yawitz sees a maximum potential rent roll of as much as $25 million.

The average rent is $1200 for stabilized units and $1863 for market-rate homes, she says, explaining that the average per-sf rent ranges from $33 to $36. “There’s approximately 700,000 sf rentable sf,” Yawitz calculates.

In addition to the condo and rental spaces, there are also 61 ground-floor retail sites throughout the complex. “There’s very little retail vacancy,” Yawitz tells GlobeSt.com. “But where there is upside potential for larger, higher profile retailers along the main avenues and cross streets, ownership is exploring those possibilities.”

Meanwhile, Denver-based apartment REIT Archstone-Smith revealed this morning that it has landed Key West, a 207-unit, 13-story high-rise community here. Details on the sale are slim, but in a statement, the trust reveals that the $110 million price will be funded primarily through the tax-deferred gain of sales of non-core apartment communities.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Awards 2020Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.