Dermot Company snaps up another two apartment buildings.
The properties are both five-story walkup apartment buildings containing a total of 135 units. The properties sold together for $15,650,000, which represents a 10.7 gross rent multiplier, 5% capitalization rate and $150 per square foot. The price per unit amounts to $115,926. 222 Seaman Avenue, on the corner of West 214th Street, is built 88' x 115' on an irregular lot. The property was constructed in 1926, with 40 apartments and approximately 32,600 square feet. More than half the units are two bedrooms or larger, generously sized at under-market rents. Average rent per unit amounts to $1,118 per month.
29-45 Sickles Street, between Nagle and Sherman Avenues, is 1920 construction, built 213' x 90'. The property contains 95 apartments and 71,475 s/f. The average rent per unit amounts to $810 per month, also leaving the purchaser with measurable upside potential.
The properties sold after a brief marketing period to The Dermot Company, procured by Ron Cohen. "This properties are a good addition to the portfolio that Dermot is building in the area," said Cohen.
"While the properties were well-managed by Millbrook, the purchaser recognized tremendous upside potential, justifying the purchase price."
Doshi added, "The Northern Manhattan market continues to attract intense investor demand, from both the entrenched players and newer institutional money."
The seller was represented by David Meyrowitz of Simon Meyrowitz & Meyrowitz, P.C. Stephen O'Connell and Daniel Lebensohn of Hartman & Craven LLP repped the buyer.
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|Publication:||Real Estate Weekly|
|Date:||Dec 27, 2006|
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