Doshi, Mehra and Shaban of Besen sell 3640 Broadway–$16.75m

Manhattan, NY Besen & Associates, Inc. has completed the sale of 3640 Broadway, located in the Hamilton Heights neighborhood. The team of Amit Doshi and Shallini Mehra represented the seller and Ronnie Shaban and Doshi represented the purchaser. The building sold for $16.75 million, a multiple of 17 plus times the gross income.

The purchase and sale agreement was signed and the title closed on the same day, at the lender Signature Bank’s office as the purchasers’ 1031 exchange was expiring that day. Doshi and Shaban worked with the lender to get the existing loan modified and assumed.

“Although the purchaser had no prior relationship with the lender, the purchaser’s insistence on modification and assumption of the loan with a LTV of 18.5%, was a win-win situation for the lender. I guess you can say every lender’s dream borrower,” said Shaban. The purchaser a savvy investor was heavily invested in commercial office buildings in Midtown. The sale proceeds came from an office property that he sold in Midtown for $40 million.

This 6-story mixed-use elevator building with 34 apartments and 7 commercial spaces was built in 1910.

The asset has 44,922 s/f with 100 ft. of retail frontage on Broadway. “The average rents were ridiculously low and the units extremely large” said Mehra. “The retail is primed to be upgraded, as this was the only corner left within six blocks without a national tenant or an upscale restaurant or boutique.”

Investors are noticing true gentrification happening in Upper Manhattan attracting millennial, working class to students who like the competitive rents to ease of commute to New York City for renters. The Neo-classical 1910’s and 1920’s construction of quality elevator apartment building on the boulevard was built with spacious layouts and superb light and air.

Located on the north east corner of West 150th St. and Broadway, 3640 Broadway is near the 1, C, B & D subway trains. The price per s/f of the property amounts to $373, the price per unit is $348,958, capitalization rate of 3.6% and a gross rent multiplier of 17.1. The metrics worked as the purchaser was a long term investor with no further desire to borrow more monies.

The seller is a fund that has actively bought and sold several billion dollars of multifamily properties in the city for the past 30 years. They had previously acquired the property in 2006 and had positioned the asset to sell, with improvements including a new elevator. Doshi had sold them the property at that time also.

Besen & Associates is a leading, full-service investment sales brokerage founded in 1988. It is consistently ranked a top performer by transaction volume. Besen offers deep knowledge and sophisticated analytical tools to handle all facets of commercial real estate transactions including investment sales, re-positioning, financing, or lease negotiations. Working with a range of investors from single-property owners to institutional and private equity investors, Besen customizes appropriate solutions for all of its clients. For more information, visit http://www.besenassociates.com.