11-Story Apartment Building on Orchard Street Listed for $16M
Landlords in the so-called Orchard Street gallery district continue to cash out. The latest to hit the market is number 55, located between Grand and Hester streets.
The eleven-story apartment complex went up for sale last week with an exorbitant price tag of $16 million. Jacov and Lazar Zimerbort are the current owners and have been since 1998; the same brothers who developed the “Z Building” development across the way at 54 Orchard.
55 Orchard Street is a block-through, mixed-use elevator building (aka 54 Allen Street) with 12 apartments and ground-floor retail (including McKenzie Fine Art). The relatively new development is pitched as a prime opportunity for condo conversion. Below is the listing via Cushman & Wakefield:
The property is 11 stories consisting of storage and laundry in the basement, retail on the ground floor and basement, two offices on the second floor and a total of 12 apartments on floors 3-9. The building is fully occupied and has a cellular antenna on the roof. There are two apartments on floors 3-7 and each apartment is a 1 bedroom with a balcony. Apartments 3A & 3B have larger terraces. On the 8th and 9th floors the elevator opens up into 2 bedroom 1.5 bathroom floor-through apartments with balconies. The commercial space is leased to a gallery and both offices are currently leased up. There is significant upside in the rents and the property is a prime opportunity for a condo conversion. The current gross rent is $662,700 and the current NOI is $371,651. The projected gross rent is $791,820 and the projected NOI is $495,025.