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Case Studies

THE ASPEN - 1955 1ST AVENUE
NEW YORK NY

Eight (8) Story, 236 Unit Luxury Rental Building 2004 Construction | SOLD

$103,000,000

Sale Price

June 2016

Close Date

$412

$/SF

$436K

$/UNIT

236

Units

250,090

Gross Sq. Ft.

EAST HARLEM

LOCATION

“The arrival of the 2nd Avenue subway line and the area’s continued improvement will enhance the property for both the near and long-term future.”

Shimon Shkury

President of Ariel Property Advisors

THE ASSET

  • Constructed in 2004, The Aspen is an eight (8) story, 250,090 square foot elevatored mixed-use building. The building contains 232 residential units and 4 retail units.
  • Residential rents at the time of the sale were operating at approximately $26 per square foot and offered investors a unique opportunity for rental upside for both near and long term.

CHALLENGE

  • Project was constructed with various subsidies resulting in income with different brackets of affordability:
    ▪ 20% of the building was rented to tenants making no more than 60% of AMI
    ▪ 30% of the units at 250% of AMI
    ▪ 50% of the were stabilized at market
  • A transforming neighborhood required unique asset positioning in order to substantiate future rent increases to potential bidders.
  • Buyer required city agency approval in order to transact limiting the buyer pool.

EXPERTISE / SOLUTIONS

  • Presenting an asset with the different affordability components required an extensive review and understanding of the existing mandates and expirations set in place by the regulatory agreements.

  • Created a high quality marketing material with a password-protected online data room that streamlined buyer underwriting.
  • Implemented a quiet, targeted marketing process which included a bid deadline that resulted in a competitive bidding environment, which presented the seller with many options to execute.

CASE STUDIES ARCHIVE

The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee the accuracy of any information provided herein. As an example, all zoning information, buildable footage estimates and indicated uses must be independently verified. Vacancy factors used herein are an arbitrary percentage used only as an example, and does not necessarily relate to actual vacancy, if any. The value of this prospective investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket, and other factors which your tax advisor and/or legal counsel should evaluate. The prospective buyer should carefully verify each item of income, and all other information contained herein.