Mehra, Mavashev and Zucco of Besen sell 5-story building for $7.45 million

Besen & Associates arranged the sale of 174 Delancey St. for $7.45 million. The off-market transaction was completed by the team of Shallini Mehra, Lev Mavashev and Alan Zucco, all of Besen. The seller was AD Real Estate, and the buyer was an out-of-state private investor. The property is located in the Lower East Side, between Clinton and Attorney Sts. across from the Williamsburg Bridge. Built in 1931, this 5-story walk-up building consists of 22 residential units and two newly renovated 700 s/f ground floor retail spaces. It contains 11,261 gross s/f and 5,425 s/f of available air rights. It occupies a 25' by 100' lot, with a carriage house and a courtyard in the middle of both buildings. The sale price equates to a gross rent multiplier (GRM) of 15.7, $662 per s/f and a 4.5% capitalization rate. The property is near Essex Crossing, a $1.1 billion redevelopment of Seward Park, which includes a 15,000 s/f open space, a new and expanded Essex Street Market, a dual-generation school operated by the Educational Alliance, a community center run by Grand Street Settlement, a rooftop urban farm, the Andy Warhol Museum, 250,000 s/f of office space, and a diverse mix of retail space. Seward Park will also become a hub of small-business incubation, with micro-retail spaces and creative and tech co-working and incubator space. The anticipated groundbreaking for the project is spring 2015. The first five buildings (all of the sites south of Delancey except the two adjacent sites between Norfolk and Clinton Sts.) will consist of 580 units of housing, including 316 affordable units, are anticipated to be completed by summer 2018. "The purchaser recognized the ongoing evolution of this location and was pleased to acquire this asset to satisfy a 1031 exchange requirement," said Mehra. Legal representation on the transaction was by Navid Aminzadeh for the seller and Glenn Schlesinger for the purchaser.