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Case Studies

257-271 SOUTH STREET
NEW YORK NY

Nineteen (19) Story, 256 Unit Lower East Side Elevatored Building | SOLD

$115,000,000

Sale Price

February 2015

Close Date

$449K

$/Unit

$437

$/SF

256

Units

263K

Gross SF

19

Stories

LOWER EAST SIDE

Location

“The Lower East Side has experienced tremendous growth over the last decade and has transformed into one of the Manhattan’s most sought after neighborhoods.”

Robert Nelson

President, Nelson Management Group

THE ASSET

  • Taken out of the Mitchell Llama program in 2004, there are currently 78 Free Market units, 135 units which receive HPD “enhanced voucher” subsidies, 42 units under LAP (Landlord Assistance Program), and 1 employee’s unit.
  • Of the property’s 256 residential units, there are 36 studio, 57 1-bedroom, 108 2-bedroom, and 55 3-bedroom apartments.
  • Offering a rare combination of scale, upside and a prime riverfront location, 257-271 South Street stands out as a premier multifamily investment in one of Manhattan’s most dynamic neighborhoods.

CHALLENGE

  • Three separate regulatory components on a majority of the units were in effect at the time of the listing which impacted the interest and willingness of potential buyers.
  • A more selective buyer pool needed to be targeted due to scale and market value of the property.

EXPERTISE / SOLUTIONS

  • Due to prior experience and high deal volume with similar regulatory assets, our sales team was able to educate prospective buyers about restrictions on the property which enabled them to consider future use options from an informed perspective.
  • Contacted qualified operators as well as capital investors to build a large and capable buyer pool.
  • Implemented bidding deadline to facilitate an intense and expedited marketing timetable which led to an increased competitive bidding environment, exceeding initial pricing expectations.

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.