By Al Barbarino
A midtown apartment building has just hit the market through Marcus & Millichap.
The leasehold interest on the Indigo, a 14-story, 164-unit apartment building with ground floor retail at 230 East 44th Street has been priced at $47 million.
“This property’s irreplaceable Midtown Manhattan location, combined with New York City’s extremely tight multifamily vacancy rate, will result in significant returns for the new ownership,” said Peter Von Der Ahe, a first vice president of investments at Marcus & Millichap who is marketing the asset along with Scott Edelstein and Seth Glasser.
More than 70 percent of the apartments in the building are market-rate, with 82 percent studios, 14 percent one-bedrooms and four percent two-bedrooms. Nine market-rate units are currently being leased as corporate housing. The elevator building also has a 20,000 s/f, 103-car parking garage.
Von Der Ahe said: “The asset’s 46 rent-stabilized units offer substantial upside potential, as does the income to be gained from the three commercial spaces.
“Demand for apartments in New York City has reached near-frenzied levels not witnessed since 2005 and 2006. As a result, we expect multiple qualified bidders to express interest.”
The new owner will assume the remaining 79 years on the existing 90-year triple-net leasehold interest in this building.
The listing price represents a unit price of $281,437 and a pro-forma cash-on-cash return of 5.3 percent.