A Lower East Side portfolio where rents in some apartments are less than neighboring parking garages, has sold for $9.82 million.
Josh Goldflam, managing principal of investment sales firm Highcap Group, brokered the sale of the portfolio of three buildings at 72, 74, 104 Forsyth Street.
It is the first sale of the buildings in 34 years of ownership by the seller, according to Goldflam. who said the buyer — repped by Jonathan Aziz — has plenty of room for upside.
“These properties offer an excellent opportunity for the new buyer to increase the rent roll through the renovation and deregulation process as the apartments become vacant,” said Goldflam.
“There are even a couple of rent controlled units remaining which are paying less than the monthly parking garage spots down the block.”
The three buildings are all located within one block of each other on Forsyth Street, facing Forsyth Park between Grand Street and Broome Street.
104 Forsyth Street consists of a five-story walk up mixed-use building with 20 apartments and two stores with 9,875 s/f. 72 and 74 Forsyth Street are a five-story and six-story mixed-use walk ups with a combined 36 apartments and four stores, which total 21,658 s/f.
The buildings were delivered fully occupied and the residential portion is occupied mostly by rent stabilized tenants.
The properties sold for 11.2 times the gross rent roll, a 6.2% CAP Rate, and $310 psf.