Avison Young has been exclusively retained to sell the Historic Front Street portfolio for $87 million. The portfolio spans 143,177-square-feet (sf) and consists of seven mixed-use elevator properties on Front Street between Peck Slip and Beekman Street in the South Street Seaport neighborhood of Manhattan.
The seller, a joint venture by The Durst Organization and Zuberry Associates, is represented by James Nelson, Principal and Head of Tri-State Investment Sales and Alexandra Marolda, Associate Director, with support from Brandon Polakoff, Principal, Executive Director of Tri-State Investment Sales; David Shalom, Director; and Ryan McGuirl, Associate Director, all based in Avison Young’s New York City office. Scott Singer, Principal and Co-Lead of Avison Young Tri-State Debt & Equity Finance is handling buyer financing needs.
“Properties like this in the South Street Seaport’s historic neighborhood are rarely available for sale and are incredibly unique. The Historic Front Street portfolio is a perfect opportunity to benefit from the strong in-place cash-flow and future rental growth through light cosmetic upgrades as investment continues to flow into the area,” said Marolda. “The owners have completed a comprehensive capital improvement plan following Hurricane Sandy, including components designed to weather future storms,” added Nelson.
The portfolio’s seven buildings include 15 retail units and 95 luxury residential rental units, of which five are studios, 46 are one-bedrooms, 41 are two-bedrooms, and three are three-bedrooms. Residential units include condominium-level finishes and amenities. Three of the seven properties, 213-217 Front Street, 214 Front Street, and 236 Front Street/24 Peck Slip, benefit from 421-a tax abatements, with an average of 4 years remaining, offering near-term reduced taxes and long-term free-market rental upside. Additionally, three of the properties are tax class 2B, which caps tax increases to 8% annually or 30% over any five-year period.
“We are very proud of this unique portfolio in downtown Manhattan, which has won several awards,” said Jonathan (Jody) Durst, president of The Durst Organization.