HFF closes $24.5 million sale of retail building in Manhattan’s Upper East Sid
NEW YORK, NY – August 22, 2016 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the $24.5 million sale of 123 East 86th Street, a 7,018-square-foot, single-tenant retail property triple net leased to Citibank in Manhattan’s Upper East Side neighborhood.
HFF marketed the property on behalf of the seller, a partnership between Madison Capital and a global real estate investment management firm. The asset was purchased by a private investor for $24.5 million, representing $3,492 per total square foot.
Completed in 1927 and renovated in 1998, 123 East 86th Street is fully leased to Citibank on a triple-net-lease basis through 2022 at rents significantly below market. The building consists of three above-grade levels with an additional 2,234 square feet of lower-level space not included in the rentable square feet. Situated on a 3,021-square-foot lot between Lexington and Park Avenues, 123 East 86th Street is in the heart of Manhattan’s Upper East Side. The property is located in the 86th Street retail corridor, a prominent upper Manhattan area drawing urban retailers, including Whole Foods, H&M, SoulCycle and Sephora, and adjacent to the 86th Street subway station with its more than 20 million riders annually.
The HFF investment sales team representing the seller was led by managing directors Rob Rizzi and Jeff Julien, senior managing director Eric Anton and associate director Steven Rutman. Elad Dror and Tony Park of PD Properties represented the buyer.
“We received a tremendous response from a wide range of private and institutional investors, highlighting New York City’s appeal for high-street properties, as well as the continuing demand for cash flowing retail,” Rizzi said.
About Madison Capital
Madison Capital is a leading real estate investment and operating company focused on acquiring and repositioning superior urban retail and mixed-use assets in dynamic markets including New York, Chicago and other gateway cities. Targeting income-producing and value-add opportunities in interesting, evolving neighborhoods, the firm employs a focused and disciplined approach to its investments. Since the firm’s inception in 2002, Madison Capital has grown its portfolio to over $2.4 billion of current assets under management. For more information, please visit the firm’s website at http://mcapny.com.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.