DelShah Capital, LLC has purchased a mixed-use building at 1356 First Avenue for $9.125 million.
The building, at the corner of East 73rd Street, has a retail space occupied by Italian eatery Petaluma Restaurant and 26 one-bedroom condos. The transaction was complicated by the building’s conversion into a condominium, despite being operated as a rental. As a result, DelShah had to close on each individual condo unit.
“On a basic level, this was attractive because we see excellent upside potential for the residential units. There are also significant air rights that will allow us to add two floors to this corner building,” said Michael Shah, principal of DelShah Capital, in a statement. “We also anticipate significant growth for the retail tenant. This is an excellent asset with stable cash flow and unlimited potential, which is exactly our type of deal.”
DelShah represented itself in the transaction. Massey Knakal’s Guthrie Garvin and the Corcoran Group’s Joan McLaughlin were co-exclusive listing agents for the property, which had an asking price of $12 million.
“With under-market leases, a corner location, and significant air-rights, this 51 foot-wide property was highly attractive to retailers, investors, and developers,” said Garvin in a statement.
According to the listing, the building is 19,840 s/f and has 25,216 s/f of air rights. The annual residential income is $365,474 and the projected annual restaurant income is $476,875. Annual expenses are $335,559.
DelShah affiliate Distinct New York is the exclusive marketing agent for the building. The new owner will invest to maximize rents.