THE ASSET
- The offering consisted of a leasehold for 840 Westchester Avenue, a newly constructed retail/office building with an underground parking garage located on the southeast corner of Westchester and Longwood Avenue above the 2&5 subway station.
- The ground floor is currently occupied by Rite Aid and Deals, both of whom have long term leases with renewal options. The second floor is currently occupied by Children’s Health Fund and St. Dominic’s Home, non-profits with substantial financial backing that serve the local community. Both tenants have long term leases with renewal options. The below grade space is occupied by a parking tenant who operates a 74-car parking garage with a long term lease.
- As the 2nd floor is being leased to community-based organizations, there are 83,321 square feet of air rights.
CHALLENGE
- The offering was only for the long term leasehold and was not a fee simple sale. Any efforts to engage with the property owner proved contentious.
- The leasehold had only 34 years remaining, restricting the buyer pool to cash flow oriented investors.
- The sale had to be in the form of a loan assumption, which involved a very complicated application and approval process for the buyer.
