NEW YORK, N.Y.– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has negotiated the sale of 220 Park Ave. South (top left photo), a mixed-use residential and retail asset located between Manhattan’s trendy Gramercy Park and Union Square neighborhoods.
The asset commanded a sales price of $20 million. The gross price per square foot was $595, with a gross rent multiplier of 14.
Peter Von Der Ahe (middle right photo), a vice president investments, senior associate Joseph Koicim (lower left photo), and David Lloyd, a multifamily investment specialist, all in the Manhattan office of Marcus & Millichap, represented the seller, a Long Island-based family. The buyer was a locally based landlord and private investor.
“As the stock market remains unpredictable and unrest continues abroad, investors are increasingly turning their sights to Manhattan investment real estate, a sure bet in this unstable economy,” says Von Der Ahe.
“This turn-of-the-century, well-located asset commanded a high price per unit because of our firm’s ability to access investment capital from a wide array of interested buyers across the nation and abroad.
“Foreign investors, funds and a wide array of private investors are interested in Manhattan commercial real estate opportunities,” notes Koicim. “Furthermore, this pride-of-ownership building will only continue to appreciate in value, making this an excellent long-term investment.”
Located at the corner of Park Avenue South and 18th Street, 220 Park Ave. South has 37 residential units, most of which are studios and one-bedrooms. The approximate 33,638-square foot, nine-story asset also includes four two-bedroom duplex penthouse apartments and one 2,650-square foot retail space currently occupied by the restaurant Haru.
“This building presents the new ownership with many future redevelopment opportunities, including conversion to condos,” adds Von Der Ahe. “In this particular submarket, property owners have commanded north of $1,300-plus per square foot for newly constructed condominiums.”
Notably, the best attribute of this building is its location.
“The residential rental market is currently on fire,” continues Koicim. “This is one of the strongest rental markets in the city, with endless demand and it’s no surprise that there was a tremendous amount of interest in this asset.
“The competitive bid process generated more than 25 written offers, allowing the building to achieve a high sales price which appeared inconceivable to most investors,” Koicim concludes.
Contact: Stacey Corso, Public Relations Manager, (925) 953-1716
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