News

Join Bob Knakal and Paul Massey at the MEGA Forum Tuesday June 14, at the NYC Bar Building, presented by NYC Network Group, Inc.

For agenda, or to register, visit: http://nycnetworkgroupevents.com/wordpress/overview 

Manhattan isn’t the only borough that’s experiencing an uptick in multifamily pricing. The 1Q11 Queens pricing improved for both elevator and walkup apartment buildings over the previous quarter. Their cap rates compressed to averages of 5.2% and 6.3% respectively. These caps were within 100 basis points of the 1Q11 Manhattan caps.

One might ask why an investor would go outside Manhattan for this small increase in yield. For starters, you can buy three times the amount of bricks in Queens. The Queen’s average $/SF in 1Q11 was $171 for elevators and $168 for walkups, whereas Manhattan’s  was $518 and $592.

 However, rents can be almost triple in Manhattan. In a prewar building, Manhattan rents can range from $60-$75/SF, whereas Queens rents are generally in the mid $20s/SF. With similar operating expenses, the future upside case for Manhattan is pretty strong; but if you want stability, Queens product is hard to dispute.

Read More of James Nelson's blog at NYInc

Neighborhoods: Kew Gardens/ Agents: Paul Massey Jr.

A walk-up apartment building at 245 Mulberry Street, located between Prince and Spring Streets in Manhattan’s NoLita neighborhood, was sold in an all cash transaction valued at $7,250,000.

The 25 foot wide, five-story plus basement building contains approximately 9,650 square feet. There are twenty apartments, of which six are rent stabilized, two rent controlled and the remaining twelve units are all free market. There are six two-bedroom units, two three-bedroom units, five one-bedroom units and seven four-bedroom units. The recent gut renovations included, hardwood floors, marble tiles, new appliances and washer and dryers in each unit. Additionally, private gardens were given to the ground floor duplex apartments. The sale price equates to $751 per square foot, a 5.95% Capitalization Rate and 13.35 Gross Rent Multiple.

“This sale represents the pent up demand from foreign buyers looking to pour capital into quality commercial real estate in New York City, viewed as the most stable and highly profitable city to invest in,” said Massey Knakal Vice Chairman and Partner John Ciraulo who exclusively handled this transaction with Senior Vice President of Sales Robert Burton and Director of Sales Craig Waggner.

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Neighborhoods: NoLIta/ Agents: John Ciraulo, Robert Burton

The subject property is a four (4) story townhouse located on a beautiful block between First and Second Avenue that can be delivered vacant. It is currently configured as four (4) Free Market floor-thru apartments and is ideal for live plus income or full conversion to a single family. There are approximately 3,720 square feet of air rights remaining that can be used to add bulk to the property.

Click here for listing details.

Neighborhoods: Upper East Side

The subject property is a fully leased, 13,176 SF medical office condominium located in one of Brooklyn's most visible and iconic landmarks, One Hanson Place. The building, formerly referred to as the Williamsburg Savings Bank Tower, was built in 1930 and completely renovated in 2006 when it was converted to condominiums. It was also Brooklyn's tallest structure until 2010.

Click here for listing details.

Neighborhoods: Downtown Brooklyn/ Agents: Stephen Palmese

A multifamily building at 766 East 215th Street, located in the Williamsbridge neighborhood of the North Bronx, was sold in a transaction valued at $415,000.

The three-story walk-up building is approximately 4,875 square feet and sits on a 25’ x 125’ lot.  Of the six units, there are three two-bedroom units and three one-bedroom units. Five units were delivered vacant. The building features a new roof, new electrical panels and an upgraded boiler.  The sale price equates to $85 per square foot.

“The buyer was a local investor who plans on finishing the work to the units and leasing the property,” said Massey Knakal Director of Sales Karl Brumback who exclusively handled this transaction with Massey Knakal CEO Paul J. Massey Jr.

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Neighborhoods: Williamsbridge/ Agents: Karl Brumback, Paul Massey Jr.

Massey Knakal debuts at ICSC Recon Las Vegas next week, Monday May 23 - Wed May 25.  Many of our top executives will be in attendance.  Visit us at Booth # C 160 F Street and learn more about some of new retail leasing listings. 

Click here for conference info.

Since January of 2010, the distinction for Manhattan’s (south of 96th Street) lowest sales price per square foot was the sale of 14 commercial condominiums at 226-40 East 38th Street. New York University’s Langone Medical Center picked up these units late last year for a bargain price of $174/SF. This equated to a total sales price of $49,700,000 for 285,000 rentable square feet. Estimating a conservative land value, the price is less than a third of the replacement cost.

NYU bought the units for their short-term patient care, offices, and research facilities. The center anticipates growth in those areas, along with its department of dermatology and cancer center. The hospital raised a total of $500 million from 17,000 donors in 2008, including a $100 million gift from Kenneth Langone, for whom the center will be named after.

On average, Manhattan commercial condos sold for $850/SF in 2010; however many sold for well below $400/SF offering tremendous value. The average was artificially inflated due to many sales in Chinatown for over $2,000/SF; these sales are attributed to the fact that many of these buildings act more like retail on multiple levels.

Real more of James Nelson's blog at NYInc

A 33.33' wide 5 story walk-up apartment building containing 16 apartments of which 2 are Rent Controlled, 3 are Rent Stabilized, and 11 are Free Market. The units consist of 4 three-bedrooms and 12 two-bedrooms. The common areas and apartments have been extensively renovated in recent years after passing through NYC's Article 7-A program. The property is located steps from Morningside Park and is in close proximity to Columbia University.

Click here for listing details.

Neighborhoods: Upper West Side/ Agents: Paul Massey Jr.

A multifamily building at 137 Nelson Street, located between Clinton and Court Streets in Brooklyn’s Carroll Gardens neighborhood, was sold in an all cash transaction valued at $595,750.  

The four-story building is approximately 4,800 square feet and sits on a 20’ x 60’ lot.  There are seven apartments, three of which are vacant. The building was a distressed multiple dwelling under the New York City's Alternative Enforcement Program, requiring significant remediation of outstanding code violations. It is ideally located within close proximity to the F and G trains at the Smith - 9th Street station.  The sale price equates to $125 per square foot.

“Massey Knakal was able to target purchasers with the knowledge and capacity for handling properties requiring renovation under the Alternative Enforcement Program,” said Massey Knakal Senior Vice President of Sales Ken Freeman who exclusively handled this transaction with Massey Knakal CEO Paul J. Massey Jr. “This transaction will bring fresh capital investment to the rental building, helping to stabilize the long-term value of this property,” added Freeman.

Click here for press release

Neighborhoods: Carroll Gardens

A 13-story boutique hotel development slated for 48 guestrooms. The project awaits a flag or boutique operator to customize. The ground floor could be occupied by a hotel lobby and a lounge. The hotel is located in one of the most desirable downtown locations. Nearby hotel suites can go for as high as $650/night, as seen at the Bowery and Cooper Square Hotels. The adjacent luxury Great Jones Spa has expressed strong interest in a joint venture to provide services and direct access for the hotel. 22 Bond Street, a 25’ wide contiguous one story building, is available separately by Massey Knakal; it could be combined to enlarge the food and beverage space of 25 Great Jones if needed. Hotel opportunities are exceedingly rare in this historic district enduring little or no future competition in this trendy downtown location.

Click here for listing details.

Neighborhoods: NoHo

Massey Knakal Realty Services is pleased to announce that two of their agents have been awarded the CoStar Powerbroker award.  Thomas Donovan and Al Holloman were among those honored with this prestigious award.

Mr. Donovan joined Massey Knakal in 1998 to head up the firm's first full-service outer borough office. The office, which opened in February 1999, has gone from a two-person startup to a flourishing establishment more than 10 times its original size. In 2005, Mr. Donovan was named to the Crain's New York Business' 40 Under 40 list for his outstanding achievement in the New York City business community. In 2010, Mr. Donovan was named Massey Knakal’s Top Salesperson of the Year in Queens for the second year in a row and third place overall company-wide. This is the third year in a row that CoStar named Mr. Donovan a Top Sales Broker for Queens/Long Island. To date, Mr. Donovan has handled 147 transactions with a total aggregate sales value of over $725,299,000.

Mr. Holloman joined Massey Knakal Realty Services in 1999. Since then, Mr. Holloman has been recognized as one of the firm's top producers. To date, he has been responsible for the sale of over $200,000,000 worth of commercial, residential, and undeveloped investment properties. In the fall of 2006, he was awarded the Certified Commercial Investment Member designation (CCIM).  The CCIM designation is one of the highest professional certifications one can earn in commercial investment real estate, as it signifies to investors and practitioners worldwide that you are a recognized expert. He is currently the Treasurer of the New York Chapter.

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Massey Knakal Realty Services, NYC’s number one building sales firm, and GreenPearl Events, the rapidly growing real estate conference company, are pleased to announce that Massey Knakal will be the title sponsor for this year’s Commercial Real Estate Investment Summit, to be held May 20 at the McGraw-Hill Conference Center in Midtown Manhattan. It is a full day event with highly respected speakers, including the area’s top investors, owners, developers and financiers.  

The summit will focus on the acquisition, disposition and financing of commercial properties with an emphasis on transactions, capital investment and ROI. As opposed to the Massey Knakal Multifamily Summit, which takes place each Fall with over 600 attendees, the Massey Knakal CRE Investment Summit focuses specifically on office, retail, hotel, and industrial properties.

Separate keynote addresses by Larry Silverstein, President and CEO of Silverstein Properties, and Harry Macklowe, Founder and Chairman Emeritus of Macklowe Properties, are just two of the highlights mixed with round table discussions, a post-conference networking reception, and lively sessions covering topics such as ground-up development, capital markets, investment strategies, and recent building management regulations.

Robert Knakal, Chairman and Founding Partner of Massey Knakal, will chair this year’s event. Mr. Knakal has brokered the sale of over 1,125 properties in his career having an aggregate market value in excess of $7 billion.

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Two investment buildings at 531 Graham Avenue and 106 Engert Avenue, located on the southwest corner of Graham and Engert Avenues in Brooklyn’s Greenpoint neighborhood, was sold in an all cash transaction valued at $1,750,000.

The two frame buildings are situated on one tax lot that is approximately 3,572 square feet. 531 Graham Avenue is a three-story, mixed-use building with four apartments and one commercial unit. 106 Engert Avenue is also three-stories and consists of three apartments. The buildings are ideally located near McCarren Park, less than four blocks from the Nassau Avenue G train station and a short distance to the Bedford Avenue L train station. The sale price equates to $197 per square foot.

“There were over 20 offers on these buildings and the competition drove the price to a high level with excellent terms,” said Massey Knakal Director of Sales Mark Lively who exclusively handled this transaction with Director of Sales Brendan Maddigan. “The property was delivered vacant so each purchaser had to be qualified to ensure they were capable of closing without financing,” added Maddigan.

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Neighborhoods: Greenpoint/ Agents: Mark Lively

The Paterson Portfolio consists of nine (9) apartment buildings located throughout the municipality of Paterson, Passaic County, New Jersey. Each property contains either two (2) or three (3) units, combining for a total of twenty three (23) units. This Portfolio is a stable investment as all of the properties are currently occupied, with an annual net operating income of $184,894.

Click here for listing details.

Neighborhoods: Passaic County

A three-story commercial building at 1032-1034 Lexington Avenue, located on the high-end retail strip of Lexington Avenue, between 73rd and 74th streets, on Manhattan’s Upper East Side, was sold in an all cash transaction valued at $10,200,000.

The property was built in the early 1900s and served as a carriage house for the 5th Avenue wealthy. More recently, it was occupied by famous French chef Daniel Boulud and was the home of the former Payard Patisserie & Bistro.

This property is thirty-four feet wide, 100 feet deep, and approximately 11,960 square feet (approx. 8,589 above grade).  The desirable location coupled with a rarely found width, and a 16’ceiling height, makes this property ideally suited for a restaurant, retailer, investor, or developer. The sale price equates to $1,187 price per square foot.

“We had an unbelievable amount of interest in the site. The well known location and 34 foot width made it extremely desirable to restaurateurs and retailers as well as investors and developers,” said Massey Knakal First Vice President of Sales Guthrie Garvin who exclusively represented the seller in this transaction.

Click here for press release

Neighborhoods: Upper East Side

Greenwich Village townhouse prices are now rivaling the Upper East Side’s. In January, 23 Perry Street sold for $11,650,000 or about $3,350/SF.  I have witnessed a trend where many uptown buyers are coming downtown to live and paying equivalent dollars to do so.

23 Perry is a 19’ wide, 4-story, completely renovated townhouse with about 3,500 square feet.  According to StreetEasy, the house, which was published in Town & Country, has 4 bedrooms, 4 baths, 4 fireplaces, an elevator, a pool, and a landscaped garden wired for sound. This sale, on a price per square foot basis, was on par with the top Upper East Side townhouse sales.

However, the Upper East Side top townhouse sales still far surpass the Village in total dollars. The New York townhouse record was set in 2006 when investment banker J. Christopher Flowers bought the Harkness Mansion at 4 East 75th Street, off Fifth Avenue, for $53 million. At over 16,000 square feet, this sale amounted to about $3,300/SF, which was equivalent to 23 Perry. But when looking at the total price paid, this sale occurred at more than $15 million above the 2007 Village record set at 11-13 West 10th Street, a 55’ double-wide townhouse.

Read more of James Nelson's blog at NYinc

Neighborhoods: Greenwich Village

Massey Knakal Realty Services is pleased to announce that Senior Vice President of Sales Robert Burton has negotiated the lease, with option to purchase, at 218-220 Bowery. Formerly known as the Prince Hotel, the building is located between Spring and Prince Streets in Manhattan’s SoHo neighborhood.

The 50’ wide, four-story, fireproof building has eight remaining SRO tenants on the second floor and the popular R Bar on the ground floor. In addition to the 17,000 existing square feet, 13,000 square feet can be added as of right to bring the building to 30,000 square feet.

Mr. Alessandro Zampedri, the world renowned Italian Indycar race car driver and Founder and Managing Director of BMC Consulting, with partner Sanford Kunkel signed the two year lease/option and will open The Bowery House, a unique, stylish, affordable hospitality concept on the third and fourth floors and a chic coffee bar on the ground floor.
 
Richard Kestenbaum was attorney for the owners and Mitch Kossoff was attorney for Mr. Zampedri.

“The current owners worked diligently over the last 10 years to legally vacate and improve the building. The resurgence of the Bowery has intensified interest in the area,” said Massey Knakal Senior Vice President of Sales Robert Burton who exclusively handled this transaction. Mr. Burton has completed over $400 million dollars in transactions including 231 Bowery, 199 Bowery (formerly owned by the same owners of 218-220 Bowery), 180 Bowery, 114 Bowery, and most recently, the lot at 197-199 Mott Street, the site of a future boutique hotel.

Click here for press release

Neighborhoods: SoHo/ Agents: Robert Burton

The subject property is located on the south east corner of Atlantic Avenue & Smith Street in the Boerum Hill neighborhood of Brooklyn. Featuring 40’ of frontage on Atlantic & 80’ of frontage on Smith, the property remains in an R6-A/C2-4 zone & can accommodate an additional 2,000 SF of development rights. The property is comprised of three retail stores, two offices & four apartments. The New St. Claire Restaurant is the anchor tenant with a lease expiring in 2017, however the landlord will make representation that the space can be delivered vacant.

Click here for listing details.

Neighborhoods: Boerum Hill/ Agents: Stephen Palmese

A commercial building at 207 West 75th Street, located on Manhattan’s Upper West Side, was sold in an all cash transaction valued at $5,025,000.
 
The property is located just north of the Beacon Theater on the truncated block of just 225 feet in width between Broadway and Amsterdam, affording superior visibility from both avenue corners. It is just a two minute walk from Central Park on one of the city’s best residential streets. The two-story property with full basement is 25 feet wide, approximately 5,025 gross square feet, has a curb cut, and additional air rights. The sale price equates to approximately $1,000 per square foot.
 
“In most areas of the city there is certainly nothing unusual about a 25 by 100, two-story commercial building, but when you find one in the West 70's of Manhattan with a curb cut and air rights, it tends to attract a lot of attention,” said Massey Knakal Senior Vice President of Sales Paul B. Smadbeck who exclusively handled this transaction. "It was an interesting assignment," added Smadbeck.

Click here for press release

Neighborhoods: Upper West Side