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In my past postings, I’ve written on how the best Manhattan development sites are now achieving over $650/BSF. With condos selling in the thousands per square foot, it’s easy to understand why. But what about affordable housing sites where condo sellouts aren’t an option?

In many cases today, these sites are purchased as one story taxpayers or land banks as subsidies have become less and less available to support affordable development.

My firm recently handled the sale of a commercial building/development site at 810 River Avenue in the Bronx. It was ideally located on the southeast corner of River Avenue and East 158th Street, directly across the street from the old Yankee Stadium. It was sold in an all cash transaction valued at $2,500,000 which was $62/SF or only $12.50/BSF.

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Neighborhoods: Melrose/ Agents: Guthrie Garvin, James Nelson, Nicholas Burns, Paul Massey Jr.

The subject building is a 9-story loft multifamily building alongside the Hudson River in arguably the most coveted residential destination in New York City, TriBeCa. Consisting of 25 residential units and 5,800 square feet of commercial space, 67 Vestry benefits from panoramic river views to the west and north and roof space that currently earns billboard income but would prove to be a must-have amenity in any luxury residential conversion. The building, once a factory building like many of its neighborhood peers, still retains a mix of fair market, rent stabilized, and IMD units. With the IMD and rent stabilized units leased at rates that are just a fraction of market, the property offers tremendous upside for a multifamily investor as well as condominium conversion opportunities in the long-term. For more information, please contact us to request a confidentiality agreement.

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Neighborhoods: TriBeCa/ Agents: Nick Petkoff, Robert Knakal

Massey Knakal Capital Services is pleased to announce the closing of a loan for a mixed-use property in Brooklyn’s Greenpoint neighborhood for total proceeds of $1.8 million.

The property consists of seven residential units and one commercial unit.  The seven-year fixed-rate loan was executed through Fannie Mae at an interest rate of 4.4% with a shortened yield-maintenance provision.

“Massey Knakal Capital Services provided a high leverage, fixed-rate solution for a client with a clear focus on value add redevelopment projects in Brooklyn’s burgeoning neighborhoods. The facility allowed Massey Knakal’s client, a partnership of attorneys with over 20 years of real estate legal experience, to cash out approximately  85% of its total equity, which will be redeployed into their next project,” said Director Scott Aiese, who exclusively handled this transaction.

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Neighborhoods: Greenpoint/ Agents: Scott Aiese

The subject property is an approx. 14,500 SF lot located on the Northwest corner of Northern Boulevard and 215th Place in Bayside, just two blocks off Bell Boulevard. The site enjoys 100’ of frontage on high traffic Northern Boulevard and 144’ of frontage on 215th Place. The property is situated in an R6B/C2-2 zoning district, which allows for a commercial and residential development potential of approx. 29,000 SF, which makes it ideal for a developer or a owner user. Retail tenants in the vicinity includes Starbucks, T-Mobile, Verizon, ATT, Subway, Dunkin Donuts, Wendy’s, Burger King, CVS, Rite Aid, Party City, Chase, McDonald’s, White Castle, Uncle Jack’s Steakhouse, UPS, Cue Bar and many more.

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Neighborhoods: Bayside/ Agents: Stephen Preuss, Thomas Donovan

A commercial building/development site at 810 River Avenue, located on the southeast corner of River Avenue and East 158th Street, directly across the street from the old Yankee Stadium in the Bronx, was sold in an all cash transaction valued at $2,500,000.

This site consists of a two-story 40,000 square foot commercial building situated on a 20,000 square foot lot. The building houses a 50 lane bowling alley with a separate restaurant / bar.  The newly converted C6-3D zone allows 200,000 square feet of total buildable potential. The site benefits from multiple means of transportation in direct proximity, including the B, D & #4 subway lines. The recent development of the Metro-North Railroad stop at East 153rd Street provides additional access, along with local Bronx bus routes, BX13 and BX6.

The property is situated in a prime location which is currently undergoing multiple public works projects that will transform the surrounding neighborhood.

“This is the largest development site in the 161st Street/River Avenue Rezoning area,” said Massey Knakal Director of Sales Nick Burns who exclusively handled this transaction with CEO Paul J. Massey Jr. and First Vice President of Sales Guthrie Garvin.

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Neighborhoods: Melrose/ Agents: Guthrie Garvin, Nicholas Burns, Paul Massey Jr.

This fifty foot wide brick multifamily building is located near McCarren Park in Greenpoint, Brooklyn. The units are laid out efficiently as box three bedrooms (except the first floor units which are two bedrooms) and have all been renovated recently. The properties mechanical systems, including the boiler and electric have been completely updated as well. This property affords an investor an outstanding opportunity to own a turn-key rental property in an excellent location.

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Neighborhoods: Greenpoint/ Agents: Mark Lively

Located between First Avenue and Sutton Place in the Grand Sutton building, this property is a self-contained maisonette co-op that can function as either a commercial or residential space. It has its own private entrance, giving the feel of a smaller townhouse within a larger building. It consists of three floors, and has its own private garden access. It is currently operating as a law office, but can be converted to residential easily. It will be delivered entirely vacant, making this property ideal for another office user looking to purchase private space in a turn-key scenario.

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Neighborhoods: Midtown East/ Agents: Clint Olsen

Did I get your attention? I remember years ago, Carleton Sheets made similar claims on late night infomercials. Carleton’s still around, but the “No Money Down” jargon seems to have dropped off his materials.  Instead of “get rich quick schemes”, he might want to start promoting legitimate Federal loan programs which can require as little as $100 down.

HUD now offers a sales incentive program in certain high-foreclosure rate areas aimed at putting foreclosed homes back into the hands of owner-occupant buyers. (See http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/salesincentives). In select states (notNew York), buyers need a down payment of only $100 to purchase a HUD-owned REO home. They have until October to do it.

The buyer must be an owner-occupant, utilizing financing insured by the Federal Housing Administration (FHA). Standard FHA underwriting guidelines apply, and the sale must be for the full amount of the current list price.

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Agents: James Nelson

Massey Knakal Capital Services is pleased to announce the closing of a loan for a retail property located on 86th Street in Brooklyn’s Bensonhurst neighborhood. The $2,500,000 non-recourse loan was fixed for five years at 4.75% with a five-year extension option. The property is approximately 8,000 square feet and contains three retail units located on a prime retail thoroughfare in Brooklyn.

“This was a challenging loan because the property was partially owner-occupied. Typically owner-occupied properties require full-recourse financing. We were able to find a lender who believed in the real estate value and the retail market on 86th Street to complete the transaction on a non-recourse basis,” said Director Morris Betesh who exclusively handled this transaction.  

Massey Knakal Capital Services provides unparalleled market knowledge that delivers the most creative financing strategies to meet client needs. MKCS specializes in a variety of debt and equity based real estate financing including fixed rate loans, floating rate loans, construction loans, mezzanine loans and bridge loans.

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Neighborhoods: Bensonhurst/ Agents: Morris Betesh

Massey Knakal Retail Leasing Services has secured a restaurant lease at 2756 Broadway, located between 105th and 106th Streets on Manhattan’s Upper West Side.

The retail space contains approximately 1,550 square feet on the ground floor and 1,550 square feet of basement space. There is a 1,200 square foot private garden in the rear of the building. The space also benefits from 37 feet of frontage on the Upper West Side’s most desirable restaurant/retail location.  

“We received numerous offers by restaurant operators which resulted in Massey Knakal achieving a value well above the asking price,” said David Chkheidze, Director of Retail Leasing, who exclusively represented the landlord in this transaction.

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Neighborhoods: Upper West Side/ Agents: David Chkheidze

An elevatored multifamily building at 105 Avenue P, located on the northeast corner of Avenue P and West 11th Street in Brooklyn’s Bensonhurst neighborhood, was sold in an all cash transaction valued at $5,500,000.

The six-story property is approximately 45,000 square feet and sits on a 100’ x 100’ lot.  There are 41 rent stabilized apartments and one rent controlled apartment. Of the 42 units, there are 24 one bedroom units and 18 two-bedroom units. The property is ideally located near Kings Highway, Bay Parkway and the Belt Parkway. The sale price equates to approximately $122 per square foot.

“After a short marketing period, we received several offers from qualified buyers at or above the asking price. This is a reflection of the strong demand for this type of product,” said Massey Knakal First Vice President of Sales Jeffrey A. Shalom who exclusively handled this transaction with Director of Sales Stephen Preuss.

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Neighborhoods: Bensonhurst/ Agents: Jeffrey Shalom, Stephen Preuss

The site offers a combined 12,083 +/- square foot land area comprised of two adjacent properties: a surface parking lot at 140-44 West 28th Street and a 7-story mixed use loft building at 146-148 West 28th Street, along with additional air rights which the owner has acquired from 141-43 and 145-47 West 27th Streets. Alternatively, 146-48 West 28th Street could be purchased separately with or without its additional air rights. The zoning for the site is M1-6 making it suitable for hotel. The area has benefited from a residential rezoning a block to the west and other nearby boutique hotels such as the Indigo.

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Neighborhoods: Chelsea/ Agents: James Nelson, Robert Knakal

Massey Knakal Capital Services is pleased to announce the closing of a condominium conversion loan on Manhattan’s Upper West Side for total proceeds of $12.0 million.

A $12.0 million condominium conversion loan was closed in order to refinance an existing term loan and transform a pre-war multifamily building with approximately 50-units into luxury condominiums that will be sold on an individual basis.  The loan provides the necessary capital to convert the first 20 units from apartments to luxury condominiums.  After completion of the first 20 units, the innovative loan structure allows the borrower to recycle condominium sales proceeds to complete the renovation of the remainder of the condominium units.

“Massey Knakal created a mutually beneficial partnership between the developer and lender, by allowing the borrower to minimize its equity contribution with low transactional costs while providing the lender with a low-basis transaction with a leading sponsor,” said Director Scott Aiese. 

Director Scott Aiese represented his client to lenders from a banker’s perspective, after spending five years as a vice president of real estate at a major financial institution.

Massey Knakal Capital Services provides unparalleled market knowledge that delivers the most creative financing strategies to meet client needs. MKCS specializes in a variety of debt and equity based real estate financing including fixed rate loans, floating rate loans, constructions loans, mezzanine loans and bridge loans.

Neighborhoods: Upper West Side/ Agents: Scott Aiese

Beautifully built out store available for lease.  Previous use was a pharmacy. Located in Carnegie East House on Second Avenue between East 95th and 96th Streets. All uses considered.

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Neighborhoods: Upper East Side/ Agents: Jill Lovatt

A mixed-use building at 51 Hester Street, located between Essex and Ludlow Streets on Manhattan’s Lower East Side, was sold in an all cash transaction valued at $2,200,000.

The seven-story elevatored building is approximately 5,462 square feet and sits on a 22’ x 46’ lot.  The building is fully occupied with a store on the ground floor and five one-bedroom apartments above. The building was gut renovated in 2007, complete with a new elevator, mechanics, a two-story addition and a roof terrace. The sale price equates to approximately $402 per square foot and a capitalization rate of 4.5%.

“We were able to identify a group who intends to run their business out of the store,” said Massey Knakal Director of Sales Michael DeCheser who exclusively handled this transaction. “Our multilingual marketing efforts produced a premium for the seller,” added DeCheser.

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Neighborhoods: Lower East Side/ Agents: Michael DeCheser

57 Grand Street is a 4-story, mixed use loft building with a ground floor store. Ceiling heights are 13’ on the GRFL, 11’ on the 2nd FL, 9’ on the 3rd FL, and 9.5’ on the 4FL. There is no CO. Located in SoHo.

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Neighborhoods: SoHo/ Agents: Robert Burton

Massey Knakal Realty Services is pleased to announce the release of their exclusive Year-End Property Sales Reports. These unique, industry-leading, reports provides a comprehensive study of the investment sales market by product type in the entire New York City area (Manhattan, Northern Manhattan/Bronx, Brooklyn, and Queens).

“New York City’s property sales market’s recovery is generally trending positive but remains uneven,” stated Robert Knakal, Massey Knakal Chairman. “On an annual basis, 2011 volume numbers were up significantly from 2010 numbers both on a dollar volume and number of properties sold basis. It is clear, however, that the activity in the second half of the year showed signs of a slow down and we would have been ready to call the beginning of a double-dip had it not been for the fact that values appreciated. This is clearly a sign of a supply constrained market as opposed to weakening conditions. We expect supply to pick up significantly as we progress through 2012,” added Knakal.

In 2011, the total volume of buildings sold in the New York City commercial real estate market place was $25.6 billion, an increase of 80% from the $14.2 billion in 2010. The $25.6 billion is down 59% from the peak of the market in 2007, and down 15% from the 7 year average of $30 billion.

There were 1,751 transactions consisting of 2,122 buildings, an increase of 25% from 2010. The turnover rate was 1.29% of the total stock of properties. The average price per property in New York City in 2011 was $12 million, slightly off the average of $12.3 million in 2007. Manhattan accounted for 85% of total dollar volume with $21.7 billion, while Brooklyn accounted for 35% of total building sales.

Massey Knakal’s Pricing Index, which tracks price per square foot change in New York City across all property types posted a 6% increase in PPSF with all markets up from 2010. Northern Manhattan led the way with a 16% increase in price per square foot.

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Agents: Robert Knakal

It should be obvious that properties which are in great condition sell for more than those in need of repair, but by how much of a margin? Is it cheaper to buy an investment property and do the work yourself?

To consider this question, I wanted to compare two recent Brooklyn Height sales. One was a vacant turnkey property at50 Orange Street which my office recently sold.  The five-story, 12,583 SF elevatored building sold for $7,100,000 or $546/SF.

The property had been owned by The Watchtower Bible and Tract Society of New York, Inc. for over 20 years. The property had been maintained according to the incredibly high standards of care and attention that Watchtower is particularly well-known for. The Witnesses' award-winning restoration and maintenance of their properties is well-documented.

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Neighborhoods: Brooklyn Heights/ Agents: James Nelson, Stephen Palmese

Massey Knakal Realty Services is pleased to announce the sale of four senior notes for two properties in Harlem and two properties in Brooklyn. At the time of sale, the PAR Value for the collateralized notes was $5,700,000.

The collateral included a building located at 173 East 117th Street between Lexington and Third Avenues. The four-story walk-up building is approximately 3,868 gross square feet and consists of seven residential units. It is located just one block from the 116th Street subway station and the major 125th Street retail corridor.

The second Harlem property is a residential building located at 217 West 115th Street, between Frederick Douglass and Adam Clayton Powell Boulevards. The five-story walk-up building is approximately 6,565 gross square feet and consists of 10 residential apartments.  It is ideally located just four blocks from Central Park, as well as the 110th Street and 116th Street subway stations.

Massey Knakal Chairman Robert Knakal exclusively handled the note sales for 173 East 117th Street and 217 West 115th Street with Director of Sales Lev Kimyagarov.

One of the collateral buildings in Brooklyn is located at 1300-1304 Flatbush Avenue, on the corner of a five-point intersection splitting Flatbush and Bedford Avenues. This three-story commercial building is approximately 3,780 gross square feet and consists of three retail units. The sale of this note was handled exclusively by Mr. Knakal and Director of Sales Edward Gevinski.

The fourth collateral site is located at 283-285 Graham Avenue on the southwest corner of Powers Street and Graham Avenue. The site consists of one two-story building and one three-story building which combined total approximately 6,825 square feet. Together, there are three retail and three residential units. There is also a 1,000 square foot garage that is used as an artists studio. The sale of this note was handled exclusively by Mr. Knakal and Vice President of Sales Mark Lively.

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Neighborhoods: Harlem, Bushwick, Flatbush/ Agents: Edward Gevinski, Lev Kimyagarov, Mark Lively, Robert Knakal

A contemporary, 4-story single family townhouse originally built around the turn of the 20th century. The property was initially gut-renovated in 2004 and underwent a second, more refined, renovation between 2007-2008. The property is in excellent condition and receives great natural light due to its high ceilings and ample supply of windows. In 2010, the property was calendared for inclusion in the proposed West End Avenue Historic District. The property represents an ideal opportunity to purchase a smartly designed private home in the heart of the Upper West Side.

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Neighborhoods: Upper West Side/ Agents: Hall Oster