Just buy the whole building! That's right: Massey Knakal has the listing for 235-237 E. 14th St.
Here it is:
The property, situated on the north side of East 14th Street between Second and Third Avenues, contains 17 lower income housing units and 1 store. The building, erected in 1988 as part of NYC's Inclusionary Lower Income Housing Plan created 3,915 SF of retail space on the ground floor and 18,019 SF of residential floor area on floors 2 through 7. The retail store was recently leased for 10 years with one 5-year option to IHOP Restaurant for $45,833 per month or about $140/SF. IHOP is an excellent credit tenant with a corporate guarantee by Dine Equity Inc. (NYSE: DIN). IHOP’s rent increases 10% every 5 years. As a result of the Inclusionary Housing Plan in place, an investor can only benefit from the rent increases by the retail tenant and the revenue from the cell antenna. Ownership must break-even from the residential portion where rents are regulated by HPD and all units must remain affordable for the life of the building. Any profit derived above the cost to operate the building’s residential portion must be preserved in a capital reserve account that can only be used for capital improvements. The building can not be taken out of the Inclusionary Housing Program making this asset ideal for a conservative long-term investor, a retail investor, or an institution looking to place capital in a solid, low-risk investment.
So. IHOP's rent is $45,833? Yow. I would have guessed $30,000-$35,000.
Anyway, at least the building is safe from any high-end condo conversion. Wonder how the current residents handle any IHOP smells?