Mavashev and Raff of Besen & Associates complete $8.5 million sale

Besen & Associates has completed the sale of 207 Madison St. for $8.5 million. The off-market transaction was completed by the team of Lev Mavashev and Glenn Raff. The property is located on the Lower East Side, between Rutgers and Clinton Sts. in close proximity to the Manhattan Bridge and Seward Park. Built in 1920, this six-story walkup building consists of 22 residential units and one ground floor retail space occupied by a restaurant. It contains approximately 13,910 gross square feet and occupies a 26’ by 100’ lot. 17 of the apartments are one-bedroom layouts and five are three-bedrooms. Average rent per unit per month is $2,069 and average rent per room is $490. The in-place retail rent is $47 per s/f. The sale price equates to a gross rent multiplier (GRM) of 13.2, $611 per s/f and a 5.1% capitalization rate. It is located a block over from the Lower East Side’s Gouverneur Healthcare Services, at 227 Madison Street at Clinton Street. The facility underwent a $180 million renovation and expansion that started in 2008 and included a 108,000 s/f addition to the community healthcare facility. It has a five-story ambulatory care wellness building, and a redesigned long-term care services center, called the Residence at Gouverneur Court. The property was sold by Madison Realty Capital and purchased by a local private investor with other holdings in the area. “The seller acquired the asset in a distress sale in 2011 and stabilized and improved the asset,” said Mavashev. “He successfully executed his plan and exited at a 5% cap." Legal representation on the transaction was by Jay Levinton, Esq. of Westerman Ball Ederer Miller & Sharfstein, LLP and for the seller and Eric Hoberman, Esq. of Kriss & Feuerstein LLP for the purchaser.