Meridian’s Doshi and Mehra sell 72-unit elevator building for $11.5 Million

New York, NY Meridian’s Amit Doshi and Shallini Mehra recently sold their exclusive listing at 1738 University Ave., located in the Morris Heights neighborhood of the Bronx, NY. The six-story elevator building sold for $11.5 million, generating a 4.82% cap rate, $171 per s/f, $159,000 per unit, and a 9.5x gross rent multiplier. The building, which is 67,000 s/f, consists of 72 rent-stabilized units.

The property went through a mod rehab program in 1984 and entered into a Project Based Section 8 Contract for 20 years, which expired in 2004. As part of the conversion out of the program, tenants were issued Enhanced Section 8 Vouchers, which are substantially favorable than a regular public housing agency's (PHA's) basic voucher.

“We only sold this property two years ago, when it had been under a 35+ year ownership. The current sellers decided to divest this asset due to internal restructuring,” Mehra said. 

“Since the vouchers secure over 80% guaranteed rents as well as the flexibility of moving tenants, the buyer had an additional incentive to acquire an asset that was not only well-maintained but also required no capital expenditures. The maneuverability of the legal rents versus preferred rents becomes a lot easier in this case,” said Doshi.  

1738 University Ave. is in the heart of the Bronx neighborhood of Morris Heights. The building provides easy access to Manhattan and the surrounding areas via several transportation options including the Major Deegan Expressway, I-95, Metro-North, and 176th St. subway. Fordham University, Bronx Community College, and Monroe College are also nearby.

Doshi and Mehra represented both the purchaser and the seller. Attorney Matt Mandell of Mandell Mandell LLP represented the seller, and attorney Anthony Simari of Holm & O’Hara LLP represented the purchaser.