Massey
Knakal Realty Services has been retained on an exclusive basis to
arrange for the sale of the leased fee interest at 119-125 Madison
Avenue and the adjacent 27-29 East 30th Street. The property is
improved by a pair of elevatored apartment buildings totaling 125 rental
apartments and 9 commercial units.
The tenant has a 49 year, 11
month lease expiring February 28, 2038 with the option to convert the
two buildings to cooperative apartments. In this event, the lease would
extend another 150 years from the conversion date, and the owner of the
leased fee interest would receive a “conversion premium”: a lump sum
payment currently set at $4,475,000 that increases as the lease
expiration date nears. The in-place annual lease payment would remain
the same, but increase $75,000 every 10 years rather than the current
escalation rate of $50,000 every 5. Lastly, the converting sponsor
would be required to give 20% of the net profits from the sale of each
cooperative share to the landlord, allowing the landlord to realize
additional gains under this scenario.
Click here for listing details.
Neighborhoods: Murray Hill/ Agents: John Ciraulo