Manhattan, NY Team Doshi of Meridian Capital Group has contract-closed on a 39-unit elevator building located half a block from Gracie Mansion in the Yorkville neighborhood of the Upper East Side. This mostly stabilized property sold for just under $530 per s/f, $290,000 per unit, equivalent to a capitalization rate of 4.30% and a gross rent multiplier of 13.6 times.
Meridian’s Amit Doshi, Shallini Mehra, and Jonathan Shainberg represented both parties in the fee simple sales transaction. “After changes in June 2019 to New York’s rent laws, the purchaser of the S Corp shares decided that it best fit their investment strategy to exit the deal prior to closing,” said Doshi. “We were given a short window and our team executed with precision. The fee simple purchaser saw this as an opportunity to acquire a prime New York City elevator building using funds from an out of town exchange.”
Located in one of the city's most affluent neighborhoods, 525 East 88th St. has been immaculately maintained for two generations. The property was built in 1910 and was extensively renovated in the 1980s. The property is 75% rent stabilized and 25% free market. “The ownership maintained excellent paperwork including DHCR records, which is a critical component of any deal today, which enabled the purchaser to transact quickly,” said Mehra.