Tuesday, March 15, 2016

197 E.. 3rd St. is for sale

[Image via Cushman & Wakefield]

The 5-story building between Avenue A and Avenue B is now on the sales market.

Here are the details via Cushman & Wakefield:

The building currently benefits from a J-51 Tax Abatement, which expires in 2024/2025. As a result, all of the residential apartments are rent stabilized per the abatement.

While rents for 6 apartments are limited by rent stabilization, the remaining 7 occupied apartments currently achieve rents that are closer to market, but are significantly lower than the maximum legal rent for these units. There are 3 vacant units. The 6 apartments are currently renting on average for $42.39/NSF or less than $1,250/month compared to approximately $59.45/NSF for the 7 units.

Furthermore, 4 of the 6 units contain preferential rents which upon expiration would add almost $15,000 in additional income with no additional renovation work. Of the 16 total residential apartments, 13 are occupied and 3 are vacant, while 13 are configured as studios and 3 as one bedroom units.

The ground-floor commercial unit is occupied by No Malice Palace, a very popular bar and night club with exclusive access to the rear yard whose lease expires in December 2019.

Asking price: $7.5 million.

Back in 2014, some No. 197 residents, tired of the nearby bar scene, created a sign suggesting where some weekend wooseekers may go.


Anonymous said...

It's is bad enough when the a building's garden space is used by rowdy frat boys but having a bar using it must be hell. I wonder how many tenement buildings remain which have not been sold in the past 7 years to the carpetbaggers?

Michael Ivan said...

I'd like see any potential investment group of suits stroll by NMP around midnight.

The copy about expiration of rents, and stabilized and control tenants leaving is always a bit wry. They should just put in like clock and flying cash emoji's or something.

Anonymous said...

Its gonna be interesting to see what the buildings and lots recently listed go for in the end. Everyone I know in the real estate biz tell me the market has peaked and is starting to back slide. They claim the chinese recession and russian sanctions is driving down the luxury real estate prices and pushing down the market. Hope that starts to show up in rents.

Anonymous said...

That corner is SO loud. Between NMP, Poco, Mama's, and Croxley's it's ridiculous Thursday through Sunday.

Anonymous said...

@1:15 PM - This won't show up in the rents. Possibly condo sales, but not rents. Bottom line is there is a housing shortage in the city. As long as the economy chugs along, there's going to be a demand for rentals.

Anonymous said...

Why are the sellers almost never mentioned? Even a dba would be informative. Not a criticism. We luuuvs you!

Anonymous said...

Sellers are never mentioned. Its not as if someone came in with an offer- they are marketing the place. Makes no sense.

Anonymous said...

Exclusive access to the rear yard? It's ILLEGAL access and that was discussed at CB3. That place is a disaster and nobody in the right mind would want to live above the illegal bar until it closes.

Anonymous said...

I live in this building (lets just say enough years) and am stabilized. We knew it was on the market- I signed my lease and the say before the sale (I didn't now it was going to sell the next say) Landlord said they made a miscalculation in the preferential rent... and that I needed to resign. They did make a mistake so like a nice guy I signed and less than 24 hours later- I didn't get the signed lease back by the landlord- but a letter saying they no longer owned the building. Call to old landlord resulted in him saying the new owners caught the mistake and asked him to send me a new lease to sign and then told him NOT to sign it as they wanted to "deal with me themselves" The city has said that the second lease I signed is legal even if the old owners didn't sign it. The day before is total intent.

I called several city tenant advisors and ALL say I do have a lease.. but very little info has been left as to who bought the building with no way

to contact or send a check for rent (i would only do so via certified mail
) and I have reached out to the new owners regarding the situation with NO response. I have been here a long time as a stabilized tenant= I know we will need to form a tenants group to protect ourselves. There is no way in hell they will renew No Malice's lease.Although I have been told I am safe, I want to have lawyers ready and I want to know WHO these people are.. it's all been very shady so far.

Anonymous said...

All it says is NPDB LLC c/o Northstar Associates.