Von Der Ahe, Koicim and Lloyd of Marcus & Millichap arranges $12 million sale of two five-story walk-ups

Marcus & Millichap Real Estate Investment Services has arranged the sale of two five-story walk-up apartment buildings totaling 40 units on the Upper East Side. They are 234 East 88th St. and 518 East 88th St. The buildings sold for a total of $12 million, which equates to $300,000 per unit. Peter Von Der Ahe, Joseph Koicim and David Lloyd, all in Marcus & Millichap's Manhattan office, represented the seller, The Orbach Group LLC. Von Der Ahe, Koicim and Lloyd also advised the buyer, Aimco. "The new owner has acquired a package of predominately free-market units in one of the most mature and stable rental markets in Manhattan," said Von Der Ahe. "These buildings will benefit from the New York City's largest subway expansion in generations, the Second Ave. Subway Project." "With stable cash flow in place, the properties will provide a strong immediate return," said Koicim. "The five rent-stabilized apartments and the possibility of converting the one-bedroom units into junior two-bedroom apartments are long-term upsides." The building at 234 East 88th St. is located between Second Ave. and Third Ave. and features approximately 16,000 s/f of air rights. The 518 East 88th St. property is between York Ave. and East End Ave. It has 1,000 s/f of air rights. Of the 40 total apartments, 33 are one-bedroom units, three are two-bedroom apartments and four are studios. Thirty-five of the units have been deregulated. The common areas for both buildings have been completely renovated and three one-bedroom units have been converted to junior two-bedroom apartments and improved with granite countertops, washers, dryers and video intercom systems.