Lower East Side Portfolio of 7 Buildings Hits Market for $72M
An enormous chunk of Chinatown and Lower East Side real estate is now up for grabs. If you can afford it.
Investment firm Avison Young began marketing the seven-property portfolio yesterday, seeking a sale price of $72 million.
The housing package is a major divestment by controversial city landlord R.A. Cohen & Associates. It boasts seven tenement walk-ups, from East Broadway to Spring Street, with 100 residential apartments and 12 retail units.
Potential suitors are told, via broker-babble, about how the investors can “capitalize on future upside in rising neighborhoods” through this deal.
Of the 100 residential units, 31 are free-market, 39 are rent-stabilized, six are rent controlled, and 24 of the units are Altman Rule Stabilized. The Altman Rule applies to “first-turn” units that have exceeded the luxury deregulation rent threshold and will become deregulated upon the current tenants vacating.
The Portfolio offers potential investors an opportunity to capitalize on future upside in rising neighborhoods. An in-depth analysis of in-place rents and market rents uncovers a potential $570,000± in future e ective gross income. By increasing in-place rents to the market average and with the turning of 21 percent of the Portfolio from rent-stabilized to free-market, the Portfolio provides potential investors with a favorable value-add investment opportunity.
One of the sale properties, 247 Broome Street, was the subject of a tenant-led lawsuit against R.A. Cohen & Associates back in 2016. (The company was last year designated one of the city’s ten worst predatory equity landlords, according to Stabilizing NYC.) Some of the buildings also include popular commercial bar businesses like Mr. Fong’s, Ten Bells, and Sweet & Vicious.
40 Market Street
42 Market Street
21 Catherine Street
23 Catherine Street
5 Spring Street
247 Broome Street
259 East Broadway