McKen, Doshi and Chhabra of Besen & Associates sells mixed-use building in Gramercy for $5.6 million

Besen & Associates arranged the sale of 361 First Avenue for $5.6 million. The off-market transaction was completed in-house. Shoy McKen represented the seller and Amit Doshi along with Ishan Chhabra procured the buyer. The property is located on the northwest corner of First Avenue and 21st Street and consists of five free market apartments, one store and one office. The 5,000 s/f, 4-story building is built full on a lot size of 25' x 51.' Dunkin' Donuts occupies the store and has a lease through 2025. Average rent per unit per month is $1,742 and average rent per room is $498. The retail rent is $156 per s/f. The sale price equates to a gross rent multiplier (GRM) of 16.7, $1.12 million price per unit, $1,120 per s/f and a 4.6% capitalization rate. Located across from Peter Cooper Village and in proximity to Gramercy Park, the property offers access to the 4, 5, 6, L, N, Q, R subway trains. The previous owner had renovated common areas and the roof, and upgraded the boiler. "This prime corner asset is in a desirable location and has stable income from a solid national tenant. The high price per square foot was offset by a reasonable cap rate," said Mr. McKen. Legal representation on the transaction was by David Glassman for the seller and Ira Nesenhoff for the purchaser.