Friday, February 28, 2014

First Avenue home of Brickman & Sons and 22 apartments is for sale

OK, first of all, Brickman & Sons, the longtime hardware store here between East Third Street and East Fourth Street, isn't going anywhere.

However, the building at 53-55 First Ave. that houses the store is now for sale.

Here are the details via Massey Knakal:

The two 5 story buildings are situated on the west side of First Avenue between East 3rd and East 4th Streets. Combined, the buildings total approximately 18,240 gross square feet and contain 22 residential apartments and 1 commercial unit. Of the residential units, 9 are currently fair market, 12 are rent stabilized, and 1 is rent controlled, ranging in size between studios through 2 bedrooms.

Overall, both the rent regulated and fair market units are operating approximately 33% below market. By achieving market levels through renovations, vacancy turnovers, and deregulation of units, future ownership has the opportunity to substantially increase their top line and realize the building’s full potential.

Additionally, the single commercial space is owner occupied by H. Brickman & Sons and encompasses the ground floor of both buildings totaling approximately 3,840 rentable square feet. Current ownership is requiring a lease-back of the commercial space with an initial term of 20 years at $20,000 per month with 2% annual increases.

H.Brickman & Sons will also be responsible for 25% of the increase in real estate taxes. The company’s origin dates back to the 1930’s when it first opened at 53-55 First Avenue. Since then, Brickman & Sons has expanded with two additional locations in Manhattan illustrating it’s long-lasting success and providing prospective investors with long-term commitment to their space.

Asking price: $14 million.

[Image via Massey Knakal]


Anonymous said...

it sucks when you are not seen as a "full potential" occupant....bro.

That hardware store would make a lovely froyo establishment.

Ken from Ken's Kitchen said...

At this point, de Blasio, the City Council, and people like you and me should be using examples like these to pressure Gov Cuomo and our representatives in the Assembly (Deborah Glick AD-66 and Brian Kavanagh-AD 74) and State Senate Brad Hoylman SD-27, Daniel Squadron D-26) to repeal vacancy decontrol now. This is the time to do it, Cuomo is running for reelection in 2014.

Vacancy decontrol is the loophole written into rent regs in 1997 that allows landlords to deregulate rent stabilized apartment when the tenant moves out so they can charge whatever they want for the next tenants. This is how it works, it's a quick read:

Serena Solomon said...

If I was a tenant in this building, I would probably we a little nervous. I love (hate) how deregulating units is in their sales pitch.

Anonymous said...

In a few years the most of the EV apartments buildings will have the same landlord. We are blocks on the NYC monopoly game. Diversity will be gone in residents as well as businesses. This neighborhood will merge with the Upper East side in blandness and everything east of 5th ave will be called the East Side.

Anonymous said...

I think it's already close to being UES South ... I heard a rumor that the owner LL / Hardware Store haven't been the best LL to their tenants, but I guess that isn't a surprise. Re: deregulation, as far as I know, they can get a substantial increase between tenants, maybe 17% - but if that doesn't push it over $2,500 - it is still stabilized. However, if they renovate, and spend a certain amount, they can use that to deregulate, they will _make_ the numbers add up - watch out for sham renovations to deregulate, get rent history, if it's not a complete gut reno, you might want to see if it was a sham - you could recoup triple damages, etc.