Friday, May 1, 2015

249 E. 2nd St. is for sale, air rights included


[Image via Streeteasy]

Here is information about the building between Avenue B and Avenue C … via Streeteasy (Marcus & Millichap has the listing):

249 East 2nd Street contains a gross square footage of 7,050. The property has frontage on both East 2nd Street and East Houston and is built 25 feet by 54 feet deep (Block: 00384 Lot: 0029 ). The property is zoned R8A and contains approximately 1,650 square feet of unused air rights.

The subject property is a five story multifamily building consisting of 20 studio apartments. Of the 20 units, 16 are free market and 4 are rent stabilized. The rent stabilized units provide an investor tremendous rental upside and immense potential for future rental growth.

The property represents a rare opportunity to acquire a cash flowing multifamily asset in the booming Alphabet City neighborhood. With a going-in cap rate at 3.5%, the asset provides strong current cash flow with long-term future upside.

The building is adjacent to the former Mobil station off of Avenue C and East Houston. The station, which closed last September, will be demolished. There are plans in the works for a 10-story building with ground floor retail here.

As for 249 E. Second St., the asking price is $6.95 million.

9 comments:

Anonymous said...

The rent stabilized units provide an investor tremendous rental upside and immense potential for future rental growth.

And they wonder why we think real estate people are slime...

Scuba Diva said...

And it's immediately adjacent to a community garden!

Gojira said...

Oh, but Scuba Diva, since the interest level of the critters who will be moving into it probably doesn't go beyond bars and chain stores, I wonder how many will care that just next door is such a nice little facet of the neighborhood?

Anonymous said...

The rent stabilized units provide an investor tremendous rental upside and immense potential for future rental growth

Loopholes for eviction and harassment tips included in sale.

Anonymous said...

my first thought, reading that the majority of the apartments were market rate, was that maybe whoever bought it would leave the four stabilized units alone. My second thought was that whoever bought the mobil lot would buy it and build something bigger. sad.

Anonymous said...

Can't they get more for that place?

RRReality1 said...

I have lived in the building for 25 years. I do not believe anyone paying almost $7 million for it would keep it. The asking sale price is far above the current appraised value and it has well documented structural problems the current owners have recently performed cosmetic fix-ups on. So it would be torn down for some boutique condo building. Meaning all current tenants would be targeted for harassment to get out, not just the four of us in rent controlled units. The plan for the former gas station lot next door is what spurred the owners of 249 to put it up for sale.

Anonymous said...

Does anyone know what is going on with the construction next door, why it stopped?

RRReality1 said...

I've been told the attorneys for the developers were having trouble winning code variances for both the retail space they want to have on the ground floor and waiver of the minimum required number of affordable rental units that must be included. Stay tuned.