Thursday, November 13, 2014

57 Second Ave. hits the market for $30 million



Here's the listing that arrived yesterday at Massey Knakal:

A 10-story, mixed-use building located on the west side of 2nd Avenue between East 3rd and East 4th Streets. The building consists of two ground floor retail units with 33 residential units on the above floors. The ground floor retail units are both leased on a month to month basis for $3,000/month and $4,000/month or approximately $38/SF, in an area that commands rents in excess of $150/SF.

Currently, 28 of the residential units are RS, 2 are RC, 2 units are employee occupied, and 1 unit is owner occupied. The average in-place rent is less than $25/SF which is a fraction of market. This represents an excellent opportunity to take advantage of strong in-place cash flow while adding substantial value in the retail rents. The seller’s preference is to sell the shares in the corporation as opposed to a fee simple interest.

The price tag: $30 million.

And not a really good sign for the longterm future of the shoe repair/barber shop and hardware store in the retail spaces.

7 comments:

Anonymous said...

I'm usually not moved to comment on your excellent site but I just want to put in a good word here for Alex's Shoe Repair: the one on Second Ave. NOT the one on First.
I've relied on Second Ave. Alex's for years. They do amazing work for a reasonable price and the owner Alex is a real mensh, providing the everyday service this neighborhood needs.
I've been concerned about their fate with the overheated real estate market. I hope they stay in business...

Anonymous said...

Holy crap, that's my building! I've lived here since 1990!! NOOOOOOOOOOOOOOOO!!!!

bowboy said...

Everything about this listing screams -- toss out who's there and make big money! Soooo corrupt.

Anonymous said...

I would assume that means that buy-outs are coming, upon sale. For the RS RC folks at least?

ShutUpHooker said...

I wonder what a decent buy out would be for RS/RC folk... RC is at least 40 years old and I doubt the standard 1K a year is a good buy out these days ...
If they want to do a full renovation they are going to have to offer buyouts in the 100K range

Anonymous said...

The building has sold to Icon Realty (AKA T&T Realty Management) and all tenants were given notice on Friday. They want names, birthdates and more info from occupants. The big story for this building hasn't been written yet. Buyouts are my guess.

Anonymous said...

Filed under ridiculous: the two storefronts at 57-59 2nd Ave are now officially on the rental market for $26,000 & $14,000 a month each. Somehow, Icon Realty is also marketing them as a possible combination retail space even though the main entrance to the residential building currently divides the two spaces. I've posted the link for each retail space's listing below. Can't wait to welcome a new $1 Pizza joint and FroYo spot to the neighborhood before they close two months later and the storefronts sit vacant for a year while attracting pitbulls and face-tattoos.
http://www.iconrealtymgmt.com/retail