RE Equities Pays $14M for West Side Mutlifamily

(Read more on the multifamily market.)

NEW YORK CITY-RE Equities Corp. has purchased a six-story walk-up apartment building, located just east of the Meatpacking District on the west side of Manhattan, for $14.1 million, GlobeSt.com has learned. The property was sold by Alissa and David Fastenberg for above the asking price in an all-cash transaction.

A source close to the deal tells GlobeSt.com that the original asking price was $13.9 million. “It sold over the asking price because there were 14 solid offers on the table,” the source notes. “Two people decided to step it up; however, only one secured the property in the end.”

The source explains that the seller sold because the neighborhood because such a “hot destination.” The property sold for $690.96 per sf. The transaction occurred at a capitalization rate of 1.8%.

344 W. 14th St. is a 20,334-sf property located on West 14th Street between Eighth and Ninth avenues. It is composed of 25 units including eight free-market, 12 rent-stabilized, four rent-controlled and one super’s apartment. The units are a mix of two- and three-bedrooms. Of those units, the ground floor would be ideal for conversion to retail.

According to a release, the property contains upside because the existing rent per net sf for the regulated units is about $14, or $931 per month, which is a fraction of the market average, which, according to the source, are around $70 per net sf on average. It also boasts an additional 10,759 sf of air rights.

“The Meatpacking District has become one of the most sought after neighborhoods Downtown,” notes Massey Knakal Realty Services partner and managing director James Nelson, who exclusively represented the seller with broker Nikolay Diankov. “Properties are rarely offered, so it’s no surprise that we were overwhelmed with interest.” Nelson adds that Massey Knakal has witnessed retail rents triple on West 14th Street over the past two years.

Jordan Platt of Kaled Management acted as a consultant in the transaction. Bradford Lavendar Esq. of Bryan Cave LLP was the buyer’s attorney and Dennis Konner Esq. of Thelen Reid Brown Raysman & Steiner LLP was the seller’s attorney. Massey Knakal Realty Services was the sole broker in this transaction.