Marcus & Millichap Real Estate Investment Services has arranged the sale of a 9,442 s/f mixed-use building at 493 Second Ave., according to Edward Jordan, regional manager and east coast director of the firm's Net Leased Properties Group. The sales price of $3.85 million represents $450 per s/f and gross rent multiplier of 13.6.
Peter Von Der Ahe, vice president investments in the Manhattan office of Marcus & Millichap and Joseph Koicim of Marcus & Millichap's local office represented the seller, a Hong Kong-based family and the buyer, a local landlord.
"We found the perfect buyer, experienced and eager to make the necessary capital improvements to maximize the value of the building," said Koicim. "The buyer recognizes the tremendous opportunity to grow the rents, considering the average monthly residential rent was about $935 for one bedroom units."
"In addition to significant residential growth, the buyer can grow the retail rents considerably as well.  The current below market retail rents with short term leases allow for future substantial income increases for the buyer," said Von Der Ahe.  
Built in 1920, the five story, 18 unit mixed-use building is situated on Second Ave. between East 27th and 28th Sts. and within close proximity to New York University Medical and Bellevue Hospital Center. The property is comprised of 16 residential units and two commercial units, in addition to 9,135 s/f of developable air rights. The prime mixed use building has low average monthly rents and there is also significant upside to raise the rent of the soon to be expired retail leases.  
Marcus & Millichap also recently completed the sale of a 9-unit apartment building, according to Jordan. The asset commanded a sales price of $2.8 million.
Scott Edelstein, investment specialist and Von Der Ahe had the exclusive listing to market the property on behalf of the seller, a private investor. Koicim represented the buyer, a local N.J.-based family.  
"It was a unique transaction considering there were 5 rent controlled tenants," says Koicim. "However, the buyer saw an excellent opportunity to acquire such an extraordinary spacious brownstone in the heart of the Upper West Side for an attractive price per square foot."
"The buyer acquired a beautiful building in a fantastic area that is steps from the Museum of Natural History and Central Park at an unbelievable price per square foot," states Von Der Ahe.
Located just steps from the Museum of Natural History and Central Park -the four story apartment building totals 6,425 s/f and is located at 131 West 80th St. The property sits on a 21ft. x 102ft. lot fully occupied by 5 rent controlled, 3 rent stabilized and 1 free market tenant.   

With more than 1,300 investment professionals in offices nationwide, Marcus & Millichap Real Estate Investment Services is the largest commercial real estate brokerage in the nation focusing exclusively on real estate investments. In 2007, the firm closed $20.7 billion in transactions. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization; local market expertise; the industry's most comprehensive research and analysis capabilities; state-of-the-art technology; and established relationships with the largest pool of qualified investors nationally. Tags: