LichtensteinRE Retained as Exclusive Broker to Sell “Money Tree” Morris Heights 2 adjacent 5 unit properties in The Bronx, New York
LichtensteinRE has been retained on an exclusive basis to sell a package of two adjacent apartment buildings located at 71 and 74 West 174 Street in the Morris Heights section of the Bronx, New York. The asking price is $3,285,000 but offers at all prices are invited. Even before the property goes to market Lichtenstein received 2 offers, one for $3,150,000 subject to 9 month closing to give the buyer time to submit architectural plans for new development.
The properties consist in 2 three story walkup five family apartment buildings totaling 10 two bedroom residential units. These 9,569 usable square feet buildings are in excellent shape as the apartments and the entire building was completely rebuilt in 2009. The properties include amenities like a huge 13 on-site parking lot that could be quickly readjusted to accommodate 2 more spaces for a total of 15 parking spaces. There is also laundry room. A “top of the line” new $50,000 value latest high definition security system has just been installed.
Both properties are 100% free market creating a unique opportunity for quick, ready, hugely profitable redevelopment.
Additionally, the properties offer “unlimited” possibilities for developers. They have 24,533 Unused Available Additional Unbuilt Buildable Square Footage, or potential to demolish and reconstruct a 34,102 square foot apartment Building with up to 44 to 73 Apartments in this R7-1 3.44 FAR zoning. To generate the greatest density and profit at this site a developer for community facility could use the 4.8 FAR to construct 47,585 square feet or up to 139 units.
“These properties are a rare opportunity for a developer because they have tremendous air rights and building potential,” said Andrew Lichtenstein, the exclusive seller’s broker. He estimates that the Profit Potential to demo, build, rent up & sell as an ordinary market rate rental development could be of $10,789,016 and the Profit Potential to demolish, build & resell as an affordable housing project could make as much as $36 million in profit. If a developer could get approval for certain community facility usage up to $50 million could be made on this one site.
If the properties would be demolished and rebuilt as a Community Facility, the developer could use until a maximum of 47,588 square feet to build until 139 apartments. Andrew Lichtenstein explains that “this is a perfect dream deal for a NYC/NYS Federal Affordable Housing agency program for a residential housing developer to make a windfall profitable development”.
The asking price represents a 5.18% Cap Rate and an 8% Initial Cash on Cash ROE Return on Equity Investment Net Income plus Principal amortization. The Price per Maximum Usable Buildable Square Footage and Air Rights is only $96 residential and $69 PBSF as a community facility.
The properties are located in a very desirable R7-1 zoning district on West 174 Street, between Nelson Avenue and Macombs Road. They are near the 4 train on Jerome Avenue and the 2 and 3 trains in Grand Concourse. They are also near shopping, public buses and schools.
The properties are being marketed exclusively by Andrew Lichtenstein, Inc. LichtensteinRE has been actively selling multifamily property for its clients in and around New York City. LichtensteinRE invites broker participation.
LichtensteinRE specializes in the exclusive sales of multifamily and mixed use commercial real estate properties in New York City’s 5 boroughs. LichtensteinRE is a full service Commercial Real Estate Sales, Financing and Advisory Service Boutique based in New York City, the financial capital of the world. LichtensteinRE’s proven experience, track record, financing ability, exclusive buyers and connections with tens of thousands of property owners assures their selling clients the best possible price when a landlord owner wants to sell their property.
DoctorMortgage, which is LichtensteinRE’s financing division, has been a leader in commercial real estate mortgage debt financing since 1991. DoctorMortgage is able to negotiate and facilitate financing to deliver the best price, leverage and return on investment possible.
LichtensteinRE’s greatest ability is creativity and problem solving. After selling the owner’s property, LichtensteinRE has assisted successful sellers in locating replacement 1031 tax deferred exchanges and in some cases has more than doubled the seller’s net income post-closing. To learn more contact Andrew Lichtenstein at (800) 242-9888 or AL@LichtensteinRE.com