Massey Knakal sells mixed-use building

Real Estate Weekly, Jan 13, 1999

In an all-cash transaction valued at approximately $1.6 million, the building at 229 East 60th Street has been sold, according to Paul J. Massey, Jr., president of Massey Knakal Realty Services.

The property, located on the north side of East 60th Street between Second and Third avenues, is a 20-foot-wide, elevatored, mixed-use building. The building has three commercial floors and two residential floor-throughs. The floor-through apartments are on the fourth and fifth floors. The first and second floors of the property contain antique shops, and there is an office tenant on the third floor. The property contains a total of 5,700 square feet, and was fully occupied at the time of sale. The seller of the property, the Schinderman family, hired Massey Knakal exclusively to market this property. The gross annual rent on the property was $199,000, with a net operating income of approximately $111,000. At the selling price of $1.6 million, this sale reflects a gross rent multiple of over eight times the gross rent and a capitalization rate of 6.9 percent.

"This was an extremely unusual transaction in that we were able to identify a user purchaser that wanted to purchase the property, but which would not be able to get possession of the retail space for another four years," said Robert A. Knakal, chairman of Massey Knakal Realty Services, who handled this transaction. "Normally a user purchaser wants possession immediately, but we were able to identify a patient user who paid a premium for the property." The purchaser of the property plans on occupying the retail space for their antique business at the expiration of the existing leasehold.

Massey Knakal represented both parties to this transaction.