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For sale is a 40’ wide medical office building in Midwood, Brooklyn. There are five medical offices, one on each floor, as well as a fully equipped and functioning operating room with a C of O in the basement. Only the basement and first floor are occupied and the remaining offices are move-in ready. The penthouse has a roof deck and the 3rd and 4th floors have balconies in the rear of the building. Each tenant pays all their own expenses; the owner pays only the taxes. The OR and first floor are both approximately 3,862 square feet and the 2nd-5th floors are approximately 2,260 square feet each.

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Neighborhoods: Midwood

An owner approached me several months ago looking for advice on his property at 180 East 94th Street. The property was a 3 and a half story building containing a nail salon and two fair market residential units above, including a duplex with a roof deck.

 His property had been on the market for a while with an asking price of $2,500,000. A buyer had offered $2,000,000, which he was considering accepting.  He wanted to know if I thought it was a fair price.

After looking into the situation, I realized something unique: for a small, side street property it had substantial air rights. Because the property was located within 100 feet of the corner, it benefited from a C2-8 (R10 equivalent zone) with a floor-to-air (FAR) ratio of 10 times.  Most mid block properties typically have a 4 times or under ratio.

The total buildable square footage is calculated by multiplying the total lot area by the FAR. In this case the lot was only 25.3’ x 36.6’, but with the 10 times multiple it had about 9,290 of buildable square feet (BSF). The existing building was only about 3,147 SF...

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Neighborhoods: Upper East Side/ Agents: James Nelson

The subject property is a 30’ x 90’, 2-story, commercial building located on the south side of Atlantic Avenue between Smith & Hoyt Streets. This lofted ceiling building contains approximately 5,100 SF on the 1st & 2nd floors, as well as approximately 2,400 SF of full-height-ceiling basement. The building’s R6-A zoning provides for an additional 3,00 SF of development rights.

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Neighborhoods: Boerum Hill/ Agents: Stephen Palmese

A development site at 10 Box Street (6-16 Box Street & 39-49 Clay Street), located between Manhattan Avenue and Commercial Street in Brooklyn’s Greenpoint neighborhood, was sold in an all cash transaction valued at $4,200,000.

The large residential or mixed-use development site has frontage on both Box and Clay Streets. The site is 121’ x 200’ and has approximately 65,340 residential square feet or 87,120 square feet with the Inclusionary Housing bonus. Currently, there is a 24,200 square foot warehouse on the lot. The site is located one block from the Brooklyn waterfront and will offer great views on the higher floors once a building is constructed. The sale price equated to $174 per square foot and $64 per buildable square foot.

“The interest in this property was very strong with nearly 30 offers being submitted,” said Massey Knakal Director of Sales Mark Lively who exclusively handled this transaction with CEO Paul J. Massey, Jr and Director of Sales Brendan Maddigan. “When the area becomes begins to be redeveloped, this project will be a nice addition to an already rapidly improving area of Northern Greenpoint,” added Maddigan.

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Neighborhoods: Greenpoint/ Agents/Corporates: Mark Lively, Paul Massey Jr.

An industrial building at 11-26 46th Road, located between 11th and 21st Streets in Long Island City, Queens, was sold in an all cash transaction valued at $1,900,000.

The single-story building is approximately 7,500 square feet and sits on a 75’ x 100’ lot.  The building is fully sprinklered, has one overhead roll-up door and loading dock as well as 16’ high ceilings. The property is located steps from the G train and two blocks from the E and 7 trains. The building was delivered vacant.  

“The buyer, an art gallery relocating from Manhattan, paid just over $250 per square foot which represented a 25% premium over market value on a per square foot basis,” said Massey Knakal First Vice President of Sales Al Holloman who exclusively handled this transaction.

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Neighborhoods: Long Island City

255 Audubon Avenue is a 40’foot wide walk up apartment building, located on the east side of Audubon Avenue, between 177th& 178thStreets in Washington Heights. Containing 21 units (12 two-bedrooms & 9 three-bedrooms), with a very low average monthly rent per unit ($1,063), this well maintained property offers tremendous future upside potential. Currently, the property is renting at just $18.48 per net square foot in a market that can easily exceed the $30 per square foot level.

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Neighborhoods: Washington Heights/ Agents: Robert Shapiro, Thomas Donovan

A commercial condominium at 545 West 25th Street, located between Tenth and Eleventh Avenues in Manhattan’s Chelsea neighborhood, was sold in an all cash transaction valued at $2,700,000.

The property is a sixth floor commercial condo located on the sixth floor of the Chelsea Arts Tower. Originally completed in 2006, the unit boats 10 to 11 foot ceilings, Hudson River views, floor to ceiling windows, electronic keyed elevator access and a 24-hour doorman. The property is ideally located just steps form the High Line in the heart of the Chelsea Gallery District. The sale price equates to approximately $652 per square foot.

“The buyer is very excited to own in the Chelsea Arts Tower and is looking forward to building out his new gallery space. The unit requires some work to complete the renovation that was previously planned, so this ended up being a nice match.” said Massey Knakal Director of Sales Brock Emmetsberger who exclusively represented the seller with Cindy Glanzrock of Glanzrock Realty Services.

This sale represented the sixth transaction that Massey Knakal has completed in Chelsea this year.

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Neighborhoods: Chelsea/ Agents: Brock Emmetsberger

Massey Knakal Realty Services is pleased to announce the sale of senior notes for two development sites in Staten Island. The loans were non-performing, as maturity defaults occurred. The loans were sold in an all-cash transaction valued at $13,500,000.

One of the collateral development sites known as Waterfront Commons is located on the South Shore of Staten Island at the intersection of Richmond Valley Road and Arthur Kill Road. It is comprised of several contiguous land parcels containing approximately 1,300,000 square feet of M1-1 zoned waterfront property.  The site is situated in the greater Charleston shopping district, which is home to several well-known national tenants including Target, Home Depot, Bed Bath & Beyond, Petco, Modell’s and Applebee’s.

According to Costar, retail is in high demand in Staten Island. The retail vacancy rate is only 2.8%, which is well below Brooklyn’s 4.3% and Queens’ 3.7%. Staten Island had over 15 million SF of retail which included 188 chain stores alone in New Springville, which is home to The Staten Island Mall. The stores added up to the most in any NYC zip code. The retail rents in Staten Island are attractive averaging almost $25/SF, whereas Queens and Brooklyn figures are $33 and $38 respectively.

The other collateral known as Liberty Towers is located on Stuyvesant Place between Hamilton Avenue and Richmond Terrace in the St. George section of Staten Island.  It is comprised of 1.77 acres of land zoned C2-2/R6/HS (FAR 2.43) and permits a mixed-use or residential development of over 200,000 buildable square feet as of right. The site is within walking distance of the Staten Island Ferry, which provides residents with a 30 minute commute to lower Manhattan, and Richmond County Bank Ballpark, the home of the Staten Island Yankees.  This is a unique opportunity to acquire a loan for a large development site in the heart of Staten Island’s downtown business district.

“There are very few remaining loan sale offerings, so these listings receive tremendous attention when brought to market, especially from funds looking to acquire distressed opportunities,” said Massey Knakal Partner James P. Nelson who exclusively handled this transaction with Adam Hess. “This all equity transaction closed in a matter of weeks,” Nelson added.

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Neighborhoods: Staten Island/ Agents: James Nelson

Massey Knakal has just presented our 1st Half 2011 Property Sales Report for New York City. Our company tracks every sale which occurs in the Bronx, Brooklyn, Manhattan, Northern Manhattan, and Queens. Our sales force of 50 agents help compile this information throughout our four offices. As a result, we have detailed comparable sale and trend information for all property sales in the area.

Agents: James Nelson

A five-story federal style townhouse at 59 Morton Street, located between Hudson Street and Seventh Avenue in Manhattan’s West Village, was sold in an all cash transaction valued at $6,500,000.

Built in 1828 for Cornelius Oakley, this 25' wide townhouse was selected by The Index of American Design as the most outstanding example of late Federal style in New York City. Located on a premier block, the property could feature an owner's triplex with future upside on the above floors, which have a rent controlled tenant on the fourth floor, paying $127/month, and a rent stabilized tenant on the fifth floor paying $615/month. Finished 25' wide townhouses in the Village are extremely rare and have thus traded recently for as high as $20,000,000. The property could have tremendous potential for a single family conversion. The sale price equates to approximately $1,059 per square foot.

“Pricing for townhomes in Greenwich Village has increased dramatically as of late. This year alone there have been two finished townhouses in the Village which have traded for well over $3,000/SF. This shows the tremendous future potential for this house if vacated," said Massey Knakal Partner James P. Nelson, who exclusively handled this transaction. 

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Neighborhoods: Greenwich Village/ Agents: James Nelson

Will be sold with 4 IMD tenants as a Loft Board/IMD Building. The only 50 ft. x 100 ft. lot, approx. 33,500 SF property for sale in TriBeCa Prime. Corner Location. A terrific opportunity for the discerning eye. Approx. 13 foot ceilings on the retail floor and approx. 10 foot ceilings on floors 2 through 7. Great Light. Quiet yet accessible location between great retail and restaurant row on Greenwich and Hudson Streets.

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Neighborhoods: TriBeCa

Built between 1864 - 1866, the property is a two-story commercial building that was originally part of a thirteen carriage house row on West 18th Street. The property benefits from an existing curb cut, skylights on the 2nd floor, double height ceilings in the entry foyer and over 15’ ceilings on the ground floor. The interior has been recently renovated and features pristine finishes. Neighboring retail and businesses on the block include Bo Concept, West Elm and the Metropolitan Pavilion.

Zoned for both residential or commercial use, the property can be delivered vacant, providing an ideal opportunity for an investor or an owner/user; specifically high end showroom, gallery or restaurant use.

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Neighborhoods: Chelsea/ Agents: Brock Emmetsberger

The subject property is a three (3) story walkup that is currently configured as a residential duplex above medical office space. The medical office space currently occupies the ground floor and the majority of the lower level (basement) which is finished. The residential portion of the building is serviced by a gas HVAC rooftop unit and the medical space by a seperate gas boiler. There are also separate air conditioning units for the ground floor medical space as well as the lower level (basement) medical space. The property is located just steps from Lennox Hill hospital in a very desired location on the Upper East Side. The building is owner occupied and will be delivered vacant.

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Neighborhoods: Upper East Side/ Agents: Thomas Gammino Jr.

A mixed-use building at 37-45 75th Street, located in Jackson Heights, Queens, was sold in an all cash transaction valued at $1,270,000.

The five-story property is approximately 5,890 square feet and sits on a 20’ x 100’ lot.  The property consists of one professional office and one three-bedroom apartment and three four-bedroom apartments. The sale price equates to approximately $215 per square foot.

“This property is located just steps from public transportation and retail making this a very desirable location,” said Massey Knakal Vice President of Sales Swain Weiner who exclusively handled this transaction.

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Neighborhoods: Jackson Heights

A multifamily property at 527 West 48th Street, located between Tenth and Eleventh Avenues in Manhattan’s Midtown West neighborhood, was sold in an all cash transaction valued at $3,825,000.

The five-story property is approximately 9,250 square feet and sits on a 25’ x 100.42’ lot.  There are twenty residential units – eleven one-bedroom units and nine studios. Of the twenty units, 14 are free market, five are rent stabilized and one is rent controlled. A building-wide renovation program transformed this old law tenement building into a modern apartment building with highly attractive and desirable residential units. The sale price equates to approximately $416 per square foot.

“This is the second time Massey Knakal has sold this nicely renovated property,” said Massey Knakal Director of Sales Christoffer Brodhead who exclusively handled this transaction. “It’s a great location in an emerging residential neighborhood,” added Brodhead.

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Neighborhoods: Midtown West/ Agents: Christoffer Brodhead

A mixed-use walk-up at 5753 Broadway, located on the southwest corner of Broadway and West 236th Street in Kingsbridge/Riverdale section of the North Bronx, was sold in a transaction valued at $1,200,000.

The three-story property is approximately 9,500 square feet and sits on a 41’ x 100’ lot.  The building features six one-bedroom apartments and six commercial spaces including Pauline’s, an owner occupied bar with cabaret license which will be delivered vacant. There is a large second floor commercial space perfect for professional or community use. The property is adjacent to the NYPD’s 50th Precinct, steps from the MTA #1 subway line, and within walking distance to Manhattan College and Van Cortlandt Park. The sale price equates to $126.32 per square foot.

 “This property traded at a projected 7.5 GRM and 8.3% cap rate,” said Massey Knakal Director of Sales Karl Brumback who exclusively handled this transaction. “Pauline’s is closing its doors after 41 years of operation – it’s a neighborhood institution and will be missed,” added Brumback.

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Neighborhoods: Riverdale, Kingsbridge/ Agents: Karl Brumback

Massey Knakal Realty Services has been retained on an exclusive basis to arrange for the sale of 145 cooperative units located at 2100-2120 Wallace Avenue, a 150 unit elevatored multifamily building that undoubtedly represents some of the highest quality housing stock in the East Bronx. The units for sale comprise 96.5% of the cooperative shares. The 6 buildings that make up the property feature recently upgraded amenities and surround a beautifully manicured interior courtyard. With averages rents exceeding $1,200 and renovated 2 bedroom apartments leasing for $1500 and over, it is evident that both quality product and high demand for housing in the neighborhood of Pelham Parkway make this asset a stable investment whose appreciation will outstrip that of most of its borough peers in the years to come.

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Neighborhoods: Pelham Parkway/ Agents: Robert Knakal

On June 24, 2011, the New York State Legislature passed The Rent Act of 2011 extending the rent regulation laws for 4 years until June 15, 2015. The major changes include raising the threshold for deregulation on vacancy or luxury decontrol to $2,500 per month from $2,000. For the latter, the tenant must have earned $200,000 for each of the last two years, which is up from $175,000. Lastly, landlords of buildings with 36 units more will only be able to increase their monthly rents by 1/60th of what the individual unit improvements cost as opposed to the previous 1/40th, which will remain for buildings with 36 units or less. All these changes will now make it more difficult for landlords to decontrol units and increase their rent rolls.

With all these changes you may ask: why do investors still flock to rent regulated buildings? The main reason is due to the inherent upside. Simply put, these buildings generally offer no downside as the rent levels are kept artificially below market levels. If rent regulated units can be vacated, there can be a major impact to the building’s cash flow and value.

For example, if a rent stabilized tenant paying $800 per month for a 2-BR apartment vacates, a building’s value may increase by close to $800,000. The math is as follows: a market rent of $5,000 would provide $50,400 more in net operating income per year. At a conservative 6% return, this would translate to an additional $840,000 in value. Assuming this is in a building with less than 36 units, a landlord would have to spend about $61,000 to renovate and deregulate the unit, which is calculated as follows: the $2,500 threshold minus $960 (which is the $800 previous rent plus a 20% vacancy bonus) x 40. Thus, the net increase in value would be about $775,000...

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Neighborhoods: Greenwich Village/ Agents: James Nelson

Located in the heart of Chelsea, the property is a six-story mixed use building that has recently undergone a full renovation. The property contains a ground floor commercial unit, second floor commercial space and five residential units. The residential units are currently configured as two studio apartments, one floor through 1BR unit and two 1BR duplex units. All residential units have new kitchens and each of the rear units feature outdoor space. There is currently a 5-year lease with a 5-year extension in place for the retail unit.

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Neighborhoods: Chelsea/ Agents: Brock Emmetsberger

A mixed-use building at 37-49/51 75th Street located between 37th Avenue and 37th Street in Jackson Heights, Queens, was sold in an all cash transaction valued at $1,150,000.

The three-story property is approximately 3,898 square feet and sits on a 40’ x 100’ lot.  The building consists of two professional offices and one three-bedroom apartment. There is a 16’ wide driveway which extends the depth of the lot and can accommodate four vehicles. Additionally, there is a two car garage at the back of the property.  The sale price equates to $295.02 per square foot.

“This is an outstanding mixed-use property in the heart of the Jackson Heights and just steps from public transportation,” said Massey Knakal Vice President of Sales Swain Weiner who exclusively handled this transaction.

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Neighborhoods: Jackson Heights