A commercial building at 3 East 44th Street, located on the north side of East 44th Street between Fifth and Madison Avenues in Manhattan’s Midtown East neighborhood, was sold in an all cash transaction valued at $4,575,000.
The six-story property is approximately 14,175 square feet and sits on a 27’ x 100.5’’ lot and encumbered by a long term master lease that has nine years remaining at a rent of $25,950/year. There is a restaurant occupying the basement through the second floors while the remaining four floors are setup as office space and are served by a passenger elevator. The property is ideally located just two blocks from Grand Central Terminal and Bryant Park and directly across the street from The Cornell Club. The sale price equates to approximately a cap rate of just over ½% or $322 per square foot.
“Despite the long term lease and a lack of financing for a purchase, we were inundated with activity. Investors and developers saw this as an opportunity to purchase the building and future development site at a drastic discount to market due to the current master lease which is scheduled to expire in nine years. In the meantime, most buyers were happy to have an investment in a prime location with minimal management requirements,” said Massey Knakal Director of Sales Clint Olsen who exclusively handled this transaction.
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Neighborhoods: Midtown East