Doshi and Shapiro of Besen sell 165-157 William Street to Princeton Holdings and Bluestone Group for $21.5 million

Besen & Associates arranged the sale of 165-157 William St. in the Financial District section of the borough between Beekman and Ann St. The property sold for $21.5 million to a partnership between Princeton Holdings and Bluestone Group. Amit Doshi and Dan Shapiro of Besen brokered both sides of the transaction. The building was acquired by the seller in December 2010 for $6.1 million. The property is a 10-story elevator building with 11 large loft apartments and ground floor retail occupied by a pharmacy. Constructed in 1908, it has 31,073 gross s/f and is built 51' x 78' on a 52.75' x 83.25' lot. Average rent per unit per month is $4,026 with an average unit size of 2,600 s/f. The sale price equates to a gross rent multiplier (GRM) of 29, $691 per s/f, and a 2.4% capitalization rate. There are 8 full floors with 3,100 s/f lofts and one floor which has been converted into two bedroom apartments, and one convertible 3 bedroom apartment. The apartment mix includes five which are rent stabilized and six free market. Average stabilized rents are 20% that of free market rents. The remaining full floors are convertible into 3 bedroom apartments. Property is within walking distance of the Fulton Street Station [2, 3, 4, 5, A, C, J] subway trains. "The seller realized over a 200% increase in value over their holding period, while there is still growth potential for the purchaser," stated Dan Shapiro of Besen. "Between the under-market rents of the stabilized units along with potential for a condo conversion, there are multiple strategies by which they stand to profit as well," he concluded.