McKen of Besen sells 350 West 18th Street to Stone Street Properties for $10 million

Shoy McKen of Besen & Associates completed the sale of the property at 350 West 18th St. in an off-market transaction. Located between 8th & 9th Aves., the walk-up building consists of 18 apartments. It was sold by a private owner who held it as a side investment. The building traded for $10 million to Stone Street Properties. Within a block from the High Line and several blocks from the Meatpacking District and Google headquarters, the West Chelsea location commanded a premium. The property is 9,864 gross s/f on a 25' x 92' lot with three apartments per floor. The layouts include 12 one-bedroom units and 6 two-bedrooms. 77% (14) of the apartments are free-market status. Average monthly rent per apartment is $2,300, while market rental value is closer to $2,500. The sale price equated to $1,015 per s/f, 20 gross rent multiplier and a 2.8% capitalization rate. "Six-story walkups are rare, however tenants are willing to burn a few extra calories going up some stairs to be in this neighborhood. These units are nicely sized to command high rents and attract Googlers who work just blocks away," said McKen. "While $1,000+ per square foot pricing appears to be the new normal for assets in prime Manhattan locations, other metrics are indicative of quite a high valuation here," he concluded.