Massey Knakal Sells East Village Apartment Buildings
Three adjacent walkup apartment buildings at 118 & 120-22 East 4th Street, located between First and Second Avenues in Manhattan’s East Village, have been sold in an all-cash transaction valued at $20,000,000. The buildings are on two lots with 75 feet of frontage, approximately 26,000 gross square feet and 69 units.
118 East 4th Street is a six-story 24-unit building that contains approximately 10,500 square feet and sits on a 25’ x 96.17’ lot. 120-22 East 4th Street contains a five-story front building with 50’ x 46’ footprint, and a four-story rear building with a 50’ x 20’ footprint. The two buildings sit on one tax lot and enjoy a beautifully landscaped courtyard in between with bike racks for the tenants use. The two buildings contain approximately 15,500 square feet and 45 residential units. The sale price equates to approximately $770 per square foot, a sub 6% capitalization rate and 17.27 times gross rent.
The buildings feature 69 apartments split between 47 Fair Market and 22 rent stabilized units of which there are 31 studios, 34 one-bedrooms, three two-bedrooms, and one three-bedroom. The fair market apartments have been fully gut renovated and feature beautiful dark hardwood floors, dark cabinetry, stainless steel appliances, granite countertops, marble bathrooms, new moldings, and high-end light fixtures. Current ownership has also completely renovated all of the buildings’ common areas, installed a coin-operated laundry room, upgraded the electric, repointed the façade wherever necessary, and repaved the courtyard, which has beautiful decorative stone.
The improvements have dramatically increased the amount of upside to be realized with the buildings’ 22 remaining regulated units. One of New York City’s most famous and desirable neighborhoods, the East Village is known for its diverse community, vibrant nightlife, retail diversity, restaurant density, artistic sensibility, and recent gentrification.
“The purchaser continued their recent buying spree in the East Village with the acquisition of these three properties. Demand to own multifamily properties in the East Village is extremely high as rents continue to surge and vacancy in the neighborhood is below 1%,” said John Ciraulo, who exclusively represented the seller in this transaction with Craig Waggner and James Nelson.
Massey Knakal specializes in the sale of investment and user properties in the New York Metropolitan area. Since 1988, our agents have closed over 4,500 transactions having a market value in excess of $17 billion.