Massey Knakal Realty Services

Real Estate Weekly, March 15, 2000

In an all cash transaction valued at approximately $1.55 million, the retail condominium at 117 East 24th Street has been sold according to a report from Paul I. Massey, Jr., president of Massey Knakal Realty Services.

This retail condominium unit consisted of approximately 4,500 square feet of space distributed throughout the ground floor, mezzanine and basement. The basement space has high ceilings and was used as selling space. The unit was net leased to Miller Harness Company for a five-year period with a five-year option. The actual net operating income was $145,000 per annum, which resulted in a capitalization rate to the purchaser of 9.36 percent. On a blended square-foot basis, this property sold for approximately $341 per square foot. "Retail condominium units are always in high demand," said Robert A. Knakal, chairman of Massey Knakal, who represented both parties to this transaction. "This was a particularly difficult property to finance, however, given the unusually large amount of basement space that was occupied by the tenant and was discounted by lenders given its below-grade nature." The purchaser of the unit was Allan Riley, a leading purchaser of net lease investments in New York.

Massey Knakal Realty Services represented both parties to this transaction.