New York, NY JLL Capital Markets has completed the $41.5 million sale of 959-961 Second Ave. and 246 East 46th St., a 105-unit, two-building portfolio.
JLL arranged the sale on behalf of the seller, nonprofit JT Tai & Company Foundation. The buyer was Oak B. Management, a local private investor who plans to renovate and reposition the existing buildings with a focus on retail lease up.
The property at 959-961 Second Ave. is a four-story residential asset with 10 apartments and two commercial units situated at the corner of Second Ave. and East 51st St. The six-story elevator building at 246 East 46th St. comprises 81 apartments with a mix of 56 studios, five one-bedrooms, 19 two-bedrooms and a single duplex residence, as well as 12 commercial spaces.
East Midtown is in the midst of a rezoning focused on 78 blocks between the east side of Third Ave. and the west side of Madison Ave., from East 39th St. to East 57th St. The rezoning should create a commercial business district with incentives for sustainable Class A office development, transit upgrades, enhanced pedestrian access, open space and active retail corridors.
The JLL Capital Markets team that completed the transaction comprised chairman Bob Knakal, managing directors Clint Olsen and Jonathan Hageman, executive vice president Eddie Shuai and analysts Stephen Godnick and Jacob Russell.
“With nearly 7 million s/f of new commercial office space expected to come online over the next 20 years, East Midtown is primed for a remarkable revival and these assets sit at the heart of it all,” said Olsen. “The buyer intends to renovate and reposition the properties with a focus on retail lease up, positioning the investor to capitalize on the record-breaking apartment rental market and the assets’ proximity to prominent attractions as tourism stages its comeback.”
“This was an incredible investment opportunity that provides the buyer with a runway to future upside through 32,336 s/f of development potential at 959-961 Second Ave. while doubling down on a location that affords tenants of both properties the convenience of walking to working, tremendous restaurant and retail offerings and multiple transportation options,” Knakal said.
The two properties were part of a four-building portfolio offered for sale by the JT Tai & Company Foundation.
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