THE ASSET
- Measuring approximately 420’ x 200’, the site spans the vast majority of the block bounded by East 125th Street, Lexington Avenue, East 124th Street and Third Avenue
- The ground floor is currently occupied by a supermarket with a long-term NNN lease, which runs until 2024 and contains five consecutive 5-year lease renewal options. Additional income is derived by a commercial sub-tenant with a lease that expires in 2016 and contains two renewal options
- The C4-4D zoning provides approximately 370,853 total buildable square feet (as-of-right)
CHALLENGE
- The property was encumbered by multiple deed restrictions, stemming from its original conveyance and development.
- Current tenancy’s lease structure included a decrease in future rents and other ambiguous language which were detrimental to value.
- Seller was seeking a sales price based more on the potential to develop in the future, despite being encumbered by a long-term lease.
- Multiple decision makers/partners in the selling partnership had varying objectives.
- Despite the site’s prominance, the seller requested a “quiet” and “targeted” marketing process, which did not include a PR campaign or posting the listing on websites.
