Apartment building fetches $13m

Real Estate Weekly, March 19, 2008

Massey Knakal Realty Services has sold a 150-foot-wide elevatored apartment building at 618-628 West 151st Street in the Washington Heights section of Northern Manhattan in an allcash transaction valued at $13,000,000.

The six-story, 64-unit property is located to the west of Broadway. Of its 64 two- and three-bedroom units, more than 40 have been completely gut renovated. The property contains approximately 62,604 s/f. The seller delivered approved plans for three additional basement units and a laundry facility. The transaction occurred at a capitalization rate of 6.39% and a gross rent multiple of 11.56. The property sold for $207.65 per square foot to a private investor from Westchester.

"Many preferential rents are expiring, indicating even more potential for the remaining rent stabilized and rent controlled units," said Massey Knakal partner/managing director Marco Lala, who exclusively represented the seller.

"This was a rare opportunity for someone to add a 'trophy' piece to their portfolio."