Massey Knakal Sells Four East Village Apartment Buildings
Three contiguous buildings and one additional building to the westat 195, 199, 201, & 203 East 4th Street, located between Avenues A and B in Manhattan’s East Village, were sold in an all-cash transaction valued at $29,000,000.
The five-story walk-up buildings are on four 25’ x 96.17’ lots with a combined 100 feet of frontage and contain approximately 27,770 gross square feet, 46 apartments, and one store. The sale price equates to approximately $1,044 per square foot, a mid-5% capitalization rate and 14.55 times gross rent.
195 East 4th Street contains approximately 7,145 square feet and18 residential units totaling. 199 East 4th Street contains approximately 6,875 square feet, nine residential units plus one store, and an additional 102 square feet of unused air rights. 201 East 4th Street contains approximately 6,875 square feet, nine residential units, and an additional 337 square feet of unused air rights. 203 East 4th Street contains approximately 6,875 square feet, ten residential units, and 237 square feet of unused air rights.
The buildings feature 46 apartments split between 40 fair market and six rent stabilized units of which there are 18 one-bedrooms, two two-bedrooms, 21 three-bedrooms, two four-bedrooms, and three five-bedrooms. 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. 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, installed a new intercom system, and built newly added bulkheads leading out to private roof decks for many of the top floor units. They are in the process of creating private backyards for many of the lower rear floor units. These improvements have dramatically increased the rents being achieved in arguably Manhattan’s tightest rental submarket. The six remaining rent stabilized units provide additional upside for the next owner of these assets.
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.
“This transaction underscores the increase in value in recent years provided by the previous ownership. With many value-add investors creating value through major capital improvements, renovation, and turnover, there comes a class of buyers interested in long-term stabilized ownership. These four buildings are a representation of that,” said John F. Ciraulo, who exclusively represented the seller in this transaction with Bob Knakal, Michael DeCheser and Craig Waggner.
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.