A pair of contiguous five-story, walk-up apartment buildings comprised of 36 apartments and four ground floor retail stores, in the East Village at 521-523 East 12th St., has just traded for $10.9 million to a local investor through Eastern Consolidated (EC).
EC senior director Adelaide Polsinelli represented the seller, a long-time owner, and procured the buyer in the all-cash sale. Samuel Silverman, Esq., Silverman Law represented the buyer, while David Wolinisky Esq. of Otterbourg, Steindler, Houston & Rosen PC acted on behalf of the seller.
The buildings are five-story walkups, each 25-ft wide, comprised of 20,000 s/f. There are 36 apartments, a mix of one-bedrooms and two bedrooms with 16 units free market, while 20 are rent stabilized.
"With more than half of the apartments rent stabilized, in a location as hot as the East Village, the new owner is assured of enjoying substantial financial upside when leases expire and he is able to re-lease the apartments at market rates," said Polsinelli who added that when a market is artificially controlled as with rent stabilization, supply at a given price range is constricted. "So when a rent stabilized unit becomes available, it quickly assumes an overly inflated value, since demand so exceeds supply. This is what we are seeing in the East Village now, where rents are much higher than they are on the Upper East Side, given the influx of the local student population, and the huge desire to live in an area that is young, trendy, hip with so many boutiques, ethnic restaurants and a vibrant night life."
In addition, the property features four retail stores. 'Ciao for Now,' a family owned café and bakery, does a tremendous catering business. The café is celebrating its 11th year in business. A local hot spot, it specializes in using natural and organic ingredients, bakes fresh items every day from its basement state-of-the-art kitchen.
"The stabilized units are now rented at a rate of less than $1,000 per month," said Polsinelli, "so it's obvious that this property will only accrue more value as time goes by. Plus, the building faces a beautiful city-owned park. The Lower East Side and East Village have become such a sought-after enclave, possessing a very special, 'place to be' caché," concluded Polsinelli, who has sold over 200 buildings in this area during her career. Tags: