Shkury, Sozio and Tortorici of Ariel broker three sales totaling $20.52 million; includes the $18.4 million sale of a four-building apartment portfolio

Ariel Property Advisors has completed three sales totaling $20.52 million. The first deal was the $18.4 million sale of one of the largest recent mixed-use portfolios in Central Harlem below 125th St. The portfolio consists of four buildings with 82 residential units and 11 retail units located at 120-26 West 116th St.; 1917-19 Adam Clayton Powell Jr. Blvd.; 110 St. Nicholas Ave.; and 110 West 116th St. Shimon Shkury, Victor Sozio, and Michael Tortorici were the exclusive sales agents and represented the seller, a private owner, and the buyer, Treetop Development, a N.J.-based firm. "This portfolio is the first multifamily building to trade along the highly sought after West 116th St. corridor since 2009, and the street's first mixed-use portfolio to sell since 2005," said Sozio, vice president of Ariel Property Advisors. "Transactions along this corridor are extremely rare because owners realize the rapid transformation taking place around them and prefer to extract the upside themselves." He went on to notethat the final price translates to under a 6 percent cap rate and nearly $200,000 per unit. The two elevator and two walk-up, mixed-use buildings have approximately 97,209 gross s/f. All four buildings were completely renovated in the early 1990s as a moderate income development under the HPD Vacant Buildings Program and are under a regulatory agreement, which expires in 2021. The buildings also have J-51 tax benefits extending until 2026. Of the residential units, there are 60 two-bedroom and 22 three-bedroom apartments. "The portfolio received a tremendous amount of interest from the market, but especially caught the attention of institutional capital looking for real value-add opportunities," said Shkury, president of ArielProperty Advisors. Ariel Property Advisors also closed the sale of two Central Harlem development sites for $2.12 million. The first sale was 56-58 West 129th St., which sold for $1.57 million to a buyer that plans to build condominiums on the site. Zoning for the 52.58 ft, wide property allows 18,073 buildable s/f for residential use or 34,151 buildable s/f for community use, as-of-right. The seller was an institutional investor. "We had a very competitive bidding process for 56-58 West 129th St.," said Tortorici. "The sale price of over $85 per buildable s/f is a clear recovery from the lows recorded in 2008-2009. This will be one of several new condominium projects that will get underway in Harlem this year." The second property at 42 East 132nd St. is a 27 ft. wide vacant lot located between Park and Madison Aves. The current zoning allows 10,792 buildable s/f for residential or mixed use development. The seller was a private investor and the buyer closed the transaction on an all cash basis with plans to build affordable housing. In both deals, Ariel Property Advisors brokers Tortorici, Shkury, and Sozio represented the buyers and sellers. Ariel Property Advisors is a New York City investment property sales firm with an expertise in the multifamily market. The firm also produces a number of research reports including the Multifamily Month in Review: New York City; Multifamily Year in Review: New York City; Northern Manhattan Sales Report; and Northern Manhattan Fundamentals Report. More information is available at www.arielpa.com.