176 E. 3rd St. changes hands for the 3rd time in 7 years

[Via Stone Street Properties]

Catching up to some news from last week. A package of buildings dubbed "The East Side Elevator Portfolio" has sold for a reported $126.3 million.

The portfolio features four Upper East Side properties as well as 176 E. Third St., a 48-unit building between Avenue A and Avenue B. According to the Commercial Observer, investors Nader and Lisa Shalom bought the East Third Street building. The asking price had been $38.5 million.

The Shaloms become the third landlord in seven years here. Icon Realty paid $14 million for No. 176 in August 2007, according to public records. Accusations of harassment and buyout offers followed in the year ahead. Here's a passage on the situation from an article in the Post from September 2008:

“They want to buy people out and renovate the apartment, and then they want to flip the building,” said Heather Gradowski, who pays less than $700 a month for her one-bedroom apartment.

Icon flipped the building a few years later. You can read a little more about the building's recent history in the link below.

There's no word on what No. 176 fetched this time around.

Previously on EV Grieve:
176 E. Third St. hits the market for $38.5 million

176 E. Third St. hits the market for $38.5 million

[Via Stone Street Properties]

The large residential building between Avenue A and Avenue B arrived on the market yesterday.

Per the Massey Knakal listing:

Standing six stories tall, the building encompasses a total of 43,520 gross square feet and currently contains 48 residential units, 1 commercial unit and 1 professional unit. Currently, 27 units are rent regulated, 21 are free market, and one free market unit is occupied by the building's super. The building possesses substantial upside potential as it is still approximately 56% rent stabilized.

Currently, the building is renting at an average of $39.00 per net square foot with the RS units averaging approximately $19.00 per net square foot. These figures illustrate that there is still a tremendous amount of additional revenue available to capture. Over time new ownership should have the opportunity to turn over some or all of the remaining stabilized units, convert them to free market apartments and increase their annual gross revenue by over $1,000,000

The property is part of "The East Side Elevator Portfolio," a five-building multifamily package available for $150 million. This address is going for $38.5 million. The buyer will become the tenants' third landlord in seven years.

In 2008, a contentious battle broke out between longtime tenants and the building's new owners, Icon Realty. In September 2008, the Post reported that several rent-stabilized tenants were fighting to keep "their East Village neighborhood affordable by turning down buyout offers of up to $125,000." (Bob Arihood covered the story first here and here.) The residents also accused Icon of harassment.

Per the article:

The tenants complained that the landlord recently changed an electronic lock on the building’s front door to a more difficult standard version as a ploy to send them to an Icon representative looking for help. The rep would then use the opportunity to pitch the buyout, the tenants said.

“They want to buy people out and renovate the apartment, and then they want to flip the building,” said Heather Gradowski, who pays less than $700 a month for her one-bedroom apartment.

In the fall of 2011, Stone Street Properties bought the five-building portfolio for $90 million from Icon, according to The Real Deal. (At this time Stone Street renamed the buildings; No. 176 became "The Jesse.")

According to public records, Icon paid $14 million for No. 176 in August 2007.

Did someone say something about flipping the building?

Trash and treasure at Bullet Space

Through Sunday, you can check out a new exhibit at Bullet Space, the artists' collective and gallery at 292 Third St. between Avenue C and Avenue D. It's open from 1 p.m. to 8 p.m.












Previously on EV Grieve:
Bullet Space is the first of the former LES squats to take over ownership of building from city

Staying put on East Third Street

Residents at 176 E. Third Street have been offered up to $125,000 apiece to move out of their rent-stabilized apartments. They declined. As the Post notes:

The residents charge that the buyout bid by Icon Realty Management, owned by Terrence Lowenberg and Todd Cohen, would destroy the building's sense of community.
"They offered me $120,000," said Carolyn Chamberlain, 65, a secretary who pays $400 for her two-bedroom apartment in the six-story, prewar building.
"I told them I would only be interested if it was middle-six-figure offer. It's outright harassment," she said.
Alexander Camu, a bartender, said he turned down a $125,000 offer.
"I moved here when the neighborhood was crap," he said. "I turned down the offer because I'm being paid to leave my life."

Bob Arihood has been covering this story at Neither More Nor Less. Read his coverage here.