Canal Street Block Up for Sale

Calling all developers, the six buildings comprising 89-105 Canal Street, between Forsyth and Eldridge, are now on the chopping block via Massey Knakal.  Together, the deal represents a massive portfolio of commercial real estate, priced at a cool $17 million.

For that kind of dough, the buyer is to receive a blockfront property near the entrance of the Manhattan Bridge, complete with 200 square-feet of frontage and plenty of commercial space.  There is reportedly a total of 44,975 square-feet across the six buildings, including an additional 15,247 square-feet of air rights. However, because the lot is zoned as C6-1G (commercial), conversion to residential use requires a special permit.

Here is the listing:

This is a six building package of commercial buildings with 200 feet of frontage along Canal Street. There currently exists 44,975 SF in the buildings, with another 15,247 (approx.) SF of additional air rights. The buildable square footage for the site is 60,222 SF. 

There are a total of 24 commercial tenants. Actual Gross rents are $1,021,059 or about $22.70/SF which is significantly under market. Estimated expenses are $366,245. Actual Net Operating Income is $629,287 per year, with no rent coming from 7,500SF of vacant space. Projected Gross rents are $1,381,085 per year or about $30.71/SF with a projected Net Operating Income of $980,313. All of the tenants have short term leases.