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[IMGCAP(1)]NEW YORK CITY-SJM Partners has arrange for the sale of a small portfolio of apartment buildings at 162-20 89th Ave. and 164-03 89th Ave. in the Jamaica section of Queens at an asking price of $10.2 million, GlobeSt.com has learned. A source close to the deal tells GlobeSt.com that the Washington, DC-based owners have shifted their focus to retail driven properties along the East Coast.

The 89th Avenue Portfolio consists of two six-story, elevatored apartment buildings that are only being offered together as a package. The apartments at 162-20 89th Ave. consists of 40 rent stabilized units and one super’s unit over approximately 8,096 sf. The average monthly rent is $885 per month. The building at 164-03 89th Ave. consists of 32 rent stabilized apartments, a super’s unit and seven stores over approximately 9,900 sf. The average rent in this building is $1,026 per month.

[IMGCAP(2)]There is an $8-million mortgage that must be assumed at 5.5% for 10 years interest only with annual payments of $438,000. There are nine years remaining on the loan.

The source tells GlobeSt.com that total square footage of the portfolio is approximately 89,400 sf. “Many of the units as well as the common areas have undergone renovation, but some additional work will add to the value of the properties,” the source says.

“At the current asking price, there is a 10.5% cash on cash return,” says Massey Knakal broker Brian Sarath, who is the exclusive agent on the sale along with partner and managing director Thomas Donovan. “Recent rezoning in the neighborhood is allowing all properties to flourish in terms of value.”

There has been strong interest thus far, the source explains, with more than 20 bids already submitted. “There was a 368-block rezoning enacted in September 2007 here,” the source says. “City planning is looking at Jamaica as the next Downtown area. The area retail is very strong and there are significant developments being built in addition to many existing buildings being renovated.”

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