Residential portfolio for sale

Real Estate Weekly, June 18, 2008

Grubb & Ellis Company is offering for sale an Upper West Side residential portfolio that is comprised of four prime apartment buildings located in one of Manhattan's most desirable and vibrant neighborhoods.

The properties, which have been under the same ownership for decades, are all well located near major shopping, dining and transportation.

Investment sales professionals Vincent Carrega, Michael Gottlieb, Neil Helman, Paul Yager, and Jason Meister represent ownership in the disposition.

The buildings are located at: 165 W. 91st St. at the northeast corner of Amsterdam Avenue and 91st Street; 393 West End Ave. at the southwest corner of 79th Street; 200-202 W. 107th St. at the northeast corner of Amsterdam Avenue and 107th Street; 55 W. 92nd St. between Central Park West and Columbus Avenue.

While the buildings are presented as a portfolio, they are also available for purchase individually.

Combined, the properties have 307 residential rental units. Approximately one third of those are free market apartments and rented at below market rates, which presents an opportunity to see an immediate increase in revenue.

This increase in rent is made all the more possible by the current strong demand for rental apartments on the Upper West Side and Manhattan in general. In addition, 57 percent of the apartments are rent-stabilized and 11 percent are rent-controlled.

The buildings contain a mix of large pre-war apartments including studio, one, two and three-bedroom units. Currently the occupancy of the portfolio is 95 percent with no one building having an occupancy of less than 93 percent.

Retail, which exists only at 165 W. 91st St. and 200-202 W. 107th St., has significant frontage along Amsterdam Avenue.

Units in both buildings are either vacant or have leases soon to expire, providing an opportunity to reposition the retail space and take advantage of higher area rents.