THE ASSET
- 47–53 3rd Avenue (AKA 101 East 10th Street) is an 84’ wide, five (5) story elevatored building located on the northeast corner of 3rd Avenue and East 10th Street.
- Constructed in 2007, the building boasts amenities such as a recreational room, large outdoor terrace, a laundry room, and a concierge desk. Retaining 7,802 square feet of air rights due to a recent upzoning, the new owners will have an opportunity to add to both the structure and unit count.
- Due to an existing 421A tax abatement, the property is fully rent stabilized. However, while the property is vacant, owners will have an opportunity to increase current legal rents or convert to condominiums, forfeiting the tax benefits.
CHALLENGE
- Only the residential portion of the asset was for sale and did not include the retail condo.
- Because of the current use of the building for student housing, there is a 30% loss factor and existing 8’ ceilings were perceived as a challenge to most luxury converters.
- In order for the buyer to take advantage of existing air rights, an amendment to the existing condo declaration was negotiated with the current retail condo owner.
