Lichtenstein of LichtensteinRE secures $7.7 million sale of three properties

Andrew Lichtenstein, president of LichtensteinRE, has just sold a package of three multifamily properties in the Bronx for $7.7 million all-cash. This portfolio consists of three walk-up apartment buildings located at 1405 Rowland St., 2220 Adams Place and 2327 Walton Place. The three properties are in excellent condition and beautifully maintained with lovely architectural ornately detailed terracotta tile and marble. All three properties have new security systems. The buildings contain 60 large mostly renovated apartments with a total of 197 rooms. They are comprised of 4 studio, 39 one bedroom, 13 two bedroom and 4 three bedroom apartments. The units are 100% rented averaging $1,273+/- a month. "These large apartments are rented below market value representing great upside potential for the new owner. After he raises the properties' rents, his return on investment will be even greater," Andrew Lichtenstein the exclusive seller's broker said. The properties contain 53,423 total s/f of usable space plus 12,395 of unused developable square footage. The contract price represents $128,333 Per Unit, a $144 Per Square Foot and a Cap Rate of 6.9%. Andrew Lichtenstein explains that "What was most amazing is the extraordinary positive leverage and tremendous cash on cash return that our buyer should enjoy. Our buyer locked in a rate of only 2.9%. Paying 6.9% cap rate gives the buyer an unbelievable 4% profitable positive leverage on every dollar borrowed. With 80% loan to purchase price our buyer's starting return on investment should be 14% and at the end of year 1 when adding back the mortgage amortization our buyer's return on equity should be 20% which is the best way I know to create great tremendous wealth with real estate. I always strive to create a win-win sale and purchase that benefits our buyer and seller clients and this sale is a textbook example I strive to duplicate in every sale." The first property located at 1405 Rowland Street in Westchester Village was built in 1927. It's a 4 story excellent condition walk-up apartment building containing 27 large apartments in 22,560 s/f. The second property located at 2220 Adams Place in Belmont was built in 1931. It's a 5 story walk-up apartment building containing 16 large apartments in 14,663 s/f. Belmont is also known as the famous "Little Italy of The Bronx". Finally, the third property located at 2327 Walton Avenue in Fordham Heights was built in 1926. It's a 4 story walk-up excellent condition apartment building containing 17 large apartments in 16,200 s/f. Andrew Lichtenstein exclusively marketed this transaction and represented both seller and buyer. LichtensteinRE has been actively selling multifamily property for its clients in and around New York City.