The residential portion of a newly-constructed elevator building, located at 327 East 101st Street. between First and Second Avenues in Manhattan’s East Harlem, was sold in an all-cash transaction valued at $18,250,000.
The eight-story building is divided into two condominium units, a religious non-profit and residential portion. The community facility components are located on the ground and second floors and are not part of the sale. The residential component contains approximately 29,556 square feet and consists of the residential lobby on the ground floor and the units on the third to eighth floors. Constructed in 2009, the building is 99% occupied and benefits from a 421-a abatement. The sale price equates to $617 per square foot and a 4.4% capitalization rate.
“Newly-constructed institutional quality assets of this caliber are scarce in today’s market. This offers the investor the opportunity to own a stabilized asset with tremendous long-term upside,” said Cushman & Wakefield’s James Nelson who exclusively represented the seller in this transaction with Mitchell Levine and Lev Kimyagarov. “Over the past year, we have seen substantial growth in rents and condominium sellout values in this part of Manhattan. This area, traditionally considered part of East Harlem, is seeing values approach those in the Upper East Side,” added Lev Kimyagarov. The buyer was represented by Jamison Weiner of The Manhattes Group.
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Neighborhoods: Harlem