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NEW YORK CITY-FGF Enterprises Corp. has sold an eight-story elevatored loft building at 264 Water St.–a cobblestone street in the South Street Seaport Historic District–in an all-cash transaction valued at $22 million. The buyer was local based investor, Night Sky Holdings, a source close to the deal confirms to GlobeSt.com.

The buyer plans to upgrade the 48-by-130 apartments and hold the asset long term, the source explains. The property is located on the west side of Water Street between Dover and Peck Slip–a pedestrian park is planned for Peck Slip, the former Fulton Fish Market parking lot. It contains 27 oversized luxury apartments over approximately 41,278 sf, above grade. The units are all occupied and range in size from 910 sf to 1,860 sf.

The transaction occurred at a cap rate of 3.8% and sold for $532.97 per sf. The source tells GlobeSt.com that the approximate rent roll at the time of closing was $1.3 million per year. “The expenses were approximately $450,000,” the source explains. “The approximate Net Operating Income was $830,000.”

The source explains that the transaction was the highest gross rent multiple ever paid for a free market apartment building in the Financial District/South Street Seaport, at over 17 times the gross rents. The source believes that the trend will continue.

“This location is on fire,” notes Massey Knakal Realty Services broker Michael DeCheser, who exclusively represented the seller. “Sadly the purchaser of this property lost his business in the 9/11 tragedy, but five years later, invested the settle proceeds back into the building. The Seaport is an incredible place filled with richness, diversity, architecture and historical significance. It seems only fitting that more and more people are discovering it.” Massey Knakal was the sole broker.

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