Highcap and Newmark sell $18.5 million four-building midtown portfolio

Manhattan, NY Josh Goldflam, co-founder and principal of Highcap Group, along with Brian Ezratty and Scott Ellard of Newmark have arranged the sale of a four-building portfolio located at 55 West 45^th St., 34-36 West 46^th St., 46 West 46^th St., and 48 West 46^th St. The properties were sold for $18.5 million in an all cash transaction. The seller was the Kutz and Siolas families who owned the buildings for 50 years, and the buyer was the Romanoff and Kandorchov families.

The four buildings are situated in proximity to each other on 45^th St. and 46^th St. between 5^th Ave. and 6^th Ave. The properties have been owned for nearly 60 years by the same families with tenants that have also spanned decades at the properties. Current retail tenants include Subway, Via Brazil Restaurant, and Coffield. All four properties total over 52,200 s/f and were 100% occupied at the time of sale. Each building is elevatored and consist of retail and office or commercial tenants.  All the development rights for the properties were ground leased to the office building at 1166 Avenue of the Americas providing for long-term future development potential.

The sellers were represented by Ezratty and Ellard of Newmark and Goldflam of Highcap Group. The buyers were represented by Goldflam of Highcap Group.

The buyer plans to upgrade the properties through a capital improvement program. The purchase price equates to a capitalization rate of 7.5% and a price per s/f of $355. 

Goldflam said, “We are seeing the dwindling down of these long-term family owned properties in prime areas of Manhattan that were bought many decades ago at a very low basis, and have done minimal upgrades to keep the properties at modern standards. These four buildings are prime examples of a true value added investment play as the buyer will upgrade building mechanicals, façade, interiors etc to increase rental desirability despite the properties being 100% occupied. These improvements should result in a dramatic increase in rental rates at the properties as most tenants were paying below market rents. The location is also very desirable, just off the busy 6^th Ave. business hub and a block away from the Diamond District.”