asking price: $6,250,000 - loopnet · 2018. 11. 2. · students, and young professionals as well as...
TRANSCRIPT
ASKING PRICE: $6,250,000
$916 PSF | $446,500 PPU | 3% Cap Rate | 19x GRM
Besen & Associates, as exclusive agent for Ownership, is pleased to offer for sale 506 East 6th Street, New
York, NY 10022 (the “Property”) located in the East Village neighborhood of New York City.
The existing Property consists of a 5-story walkup building with 14 apartments (11 FM / 3 RS), totaling
approximately 6,825± square feet. Built circa 1920 and renovated in 1987, the Property is ideally located on
the south side of East 6th Street between Avenue A & Avenue B in the heart of the East Village, and within
walking distance of the M14A bus, the L train on 14th Street, the 6 train at Astor Place, and the 2nd Avenue
F train along Houston Street.
The 100% occupied Property, which is situated one block south of Tompkins Square Park and minutes from
the FDR Drive, is comprised of nine (9) studios and five (5) one-bedroom residential units. The studios are
averaging $1,700/month and the one-bedroom units are averaging $2,375/month, which represent a 25%-
30% discount to current market rates. The 14 apartments overall are renting at well below market rates with
an average monthly rent of $1,950, offering significant upside to new ownership.
In summary, the in-place rents at the Property are substantially below market and the building is in good
physical condition and has been very well maintained, evidenced by its continuous 100% occupancy. As the
East Village continues to develop, 506 East 6th Street is well positioned to take advantage of the continued
high demand for this neighborhood, the increasing market rents, and the opportunity for an investor to
reposition the tenancy and capture the upside potential.
LOCATION
Manhattan’s East Village is one of the city’s trendiest and most desirable neighborhoods for millennials,
students, and young professionals as well as a primary destination for culture, entertainment and nightlife.
Considered one of the prime residential neighborhood in New York City, it’s boundaries include Gramercy
Park and Stuyvesant Town to the north, the Lower East Side to the south, and Greenwich Village to the
west. The East Village is still considered to be the area “East of Broadway, to the East River, between East
14th Street and Houston Street”.
The area was once generally considered to be part of the Lower East Side, but began to develop its own
identity and culture in the late 1960’s, when many artists, musicians, students and hippies began to move
into the area. The neighborhood has become a center of the counterculture in New York, and is known as
the birthplace and historical home of many artistic movements, including punk rock and the Nuyorican
literary movement.
Over the past 20 years, the neighborhood has seen widespread gentrification, with new rental and condo
developments, hip bars and restaurants, and independent boutiques and art galleries. Part of the
neighborhood charm and attraction has been its ability to maintain it’s “edge,” and hang on to its vibrant past
with its old-school eateries, retro businesses, and preserved public spaces. The East Village will always be
known for its diverse community, vibrant nightlife and artistic sensibility.
EXECUTIVE SUMMARY
506 East 6th Street, New York, NY 10009 | 3
INVESTMENT HIGHLIGHTS
• The Property represents an exceptional opportunity to acquire a pre-war residential asset
in one of Manhattan’s premier and most desirable residential neighborhoods
• 5-story walkup with 14 spacious residential units (11 FM & 3 RS)
• 100% occupancy providing stable cash-flow
• Tremendous upside potential – Significantly below market rents (25%-30%)
• Well-maintained property requiring minimal near-term capital and low maintenance costs
• Within walking distance of the L train on East 14th Street, the 6 train at Astor Place, the
2nd Avenue F train along Houston Street and the MTA bus stop M14A around the corner
• Minutes from the FDR Drive, Williamsburg Bridge and BQE for vehicular access
• Located 1-block from Tompkins Square Park
• The East Village is a magnet for millennials, students, and young working professionals
and the neighborhood is filled with hip restaurants and bars, eclectic shops, chic boutiques,
music venues and art galleries
PROPERTY OVERVIEW – 506 EAST 6th STREET
Neighborhood East Village
Block / Lot 401 / 13
Lot & Built Size 25’ x 97’ (built: 25’ x 54’)
Gross Building Area 6,825± SF
Stories / Building Type 5-Story Walkup / C4
Total Apartments 14 Units
Zoning R7B
FAR (built / allowed) 2.81 / 3.0
Year Built Circa 1920 – Altered in 1987
Assessment & Taxes (18/19) $806,940 / $102,634
506 East 6th Street, New York, NY 10009 | 5
LOCATION MAP
STOMP
Village East Cinema
Rockwood Music Hall
New York Sports Club
Nuyorican Poets Cafe
Ippudo NY
Upright Citizens Brigade
Key Foods
Tompkins Square Park
Cooper Square
Bowery Electric
Momofuku Noodle Bar
M8
M14A
M15
M9M14A
M15
M8
506 East 6th Street
East Village is a neighborhood in the New York City
borough of Manhattan. Its boundary to the north is
Gramercy Park and Stuyvesant Town, to the south by
the Lower East Side, and to the east by the East River.
Generally, although definitions vary on the
neighborhood's exact street boundaries, the East
Village is considered to be the area east of Broadway
to the East River, between 14th Street and Houston
Street.
The area was once generally considered to be part of
the Lower East Side, but began to develop its own
identity and culture in the late 1960s, when many
artists, musicians, students and hippies began to move
into the area, attracted by cheap rents and the base of
Beatniks who had lived there since the 1950s. The
neighborhood has become a center of the
counterculture in New York, and is known as the
birthplace and historical home of many artistic
movements, including punk rock and the Nuyorican
literary movement.
East Village is still known for its diverse community,
vibrant nightlife and artistic sensibility, although in
recent decades it has been argued that gentrification
has changed the character of the neighborhood.
LOCATION OVERVIEW
506 East 6th Street
SUBWAY
Just a short walk from the property are multiple trains stations
including:
• F at 2nd Avenue
• L at 1st Avenue
• F, J, M, Z at Delancey St – Essex St
• 6 at Astor Place
• L at 3rd Avenue
BY CAR
Columbus Circle 28m by car
Grand Central 15m by car
Union Square 12m by car
Wall Street 12m by car
AIRPORTS
Three major airports are located within xx miles of the Property.
LaGuardia and John F. Kennedy international airports are both
within the New York City borough of Queens, while Newark Liberty
International Airport is situated across the Hudson River in New
Jersey.
BIKE & BUS
• M14A on Avenue A
• M15 on 1st & 2nd Avenue
• M9 on Avenue C
• M8 on 8th Street
CitiBike locations on 6th and Avenue B, 7th and Avenue A
COMMUTE TIMES
Columbus Circle 34m by train
Grand Central 29m by train
Union Square 9m by train
Wall Street 12m by train
TRANSPORTATION
BUS MAP
SUBWAY MAP
506 East 6th Street, New York, NY 10009 | 8
The information contained in this listing (“Listing”) is confidential, furnished solely for the purpose of review by a prospective
purchaser of the following property: 506 East 6th Street, New York, NY 10009 and is not to be used for any other purpose or
made available to any other person without the express written consent of Besen & Associates, Inc. or Owner. The material
is based in part upon information supplied by the Owner and in part upon information obtained by Besen & Associates from
sources it deems reliable. Summaries of documents are not intended to be comprehensive or all inclusive, but rather only an
outline of some of the provisions contained therein. No warranty or representation, expressed or implied, is made by Owner,
Besen & Associates or any of their respective affiliates, as to the accuracy or completeness of the information contained
herein or as to engineering or environmental matters. Prospective purchasers should make their own projections and
conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, including
inspections.
This Listing contains selected information pertaining to the Property and does not purport to be all-inclusive or to contain all
of the information a prospective purchaser may desire. Graphics are only a representation of property features, are not to
scale and are subject to change. All financial projections are provided for general reference purposes only and are based on
assumptions relating to the general economy, competition and other factors beyond control and are, therefore, subject to
material change or variation. An opportunity to inspect the Property will be made available to qualified prospective
purchasers.
In this Listing, certain documents, including leases and other materials, are described in summary form. The summaries do
not purport to be complete or necessarily accurate descriptions of the full agreements involved, nor do they constitute a legal
analysis of such documents. Interested parties are expected to independently review all documents. This Listing is subject to
prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation,
endorsement or advice as to the value of the Property by Besen & Associates or Owner. Each prospective purchaser is to
rely upon its own evaluation as to the advisability of purchasing the Property described herein.
Owner and Besen & Associates expressly reserve the right, at their sole discretion, to reject any or all expressions of interest
or offers to purchase the Property and/or to terminate discussions with any party at any time with or without notice. Owner
shall have no legal commitment or obligation to any purchaser reviewing this Listing or making an offer to purchase the
Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by
Owner and any conditions to Owner’s obligations there under have been satisfied or waived. Besen & Associates is not
authorized to make any representations or agreements on behalf of Owner.
This Listing is the property of Besen & Associates and may be used only by parties approved by Besen & Associates and
Owner. The Property is privately offered and, by accepting this Listing, the party in possession hereof agrees (i) to return it to
Besen & Associates immediately upon request of Besen & Associates or Owner and (ii) that this Listing and its contents are
of a confidential nature and will be held and treated in the strictest confidence. No portion of this Listing may be copied or
otherwise reproduced or disclosed to anyone without the prior written authorization of Besen & Associates and Owner. The
terms set forth above apply to this Listing in its entirety.
CONFIDENTIALITY & DISCLAIMER
506 East 6th Street, New York, NY 10009 | 9
Besen & Associates | 381 Park Avenue South, 15th Floor | New York, NY 10016 | (212) 689-8488
±
Eric Tiefen
Associate
(646) 472-5309
Paul J. Nigido
Senior Financial Analyst
(646) 424-5350
Shlomo Gelernter
Senior Director
(212) 951-8407
Jared Rehberg
Marketing Manager
(646) 424-5067