Dermot proving to be extreme makeover star.
The firm acquired two buildings, at 229 East 12th Street and at 75-81 Orchard Street, in pursuit of its strategy to acquire underdeveloped properties and to provide the capital for the necessary improvements to upgrade the quality of the buildings.
The Lower East Side and East Village neighborhoods have been experiencing a sharp deficit of inventory for the influx of potential renters and Dermot said it is pleased to be providing these units for the market. Capital improvements will be made and, as units roll over, upgrades will be made to the apartments.
These two building acquisitions represent best-case scenarios of the ability to improve properties while subscribing to the New York rent stabilization program, according to the firm.
In choosing to acquire 229 East 12th Street and 75-81 Orchard Street, the company sought out rental buildings in markets that have the potential to draw tenants able to pay a higher rent for an apartment in an in-demand neighborhood.
In addition to its residential units, 75-81 Orchard Street boasts eight separate retail spaces facing Orchard Street, a stretch that is quickly transforming into one of the most fashionable shopping and dining districts in the City.
The Dermont Company also acquired 403 units worth of unsold shares in Dara Gardens, a 535-unit cooperative in Kew Gardens Hills, another area with an evolving profile as a destination NYC neighborhood.
Dermot will renovate the 403 units and sell them on the market to meet the growing demand for Queens cooperative residences.
The co-op market in Queens is strong and the dearth of available inventory has been an inhibiting factor for buyers eager to enter this market.
The objective with Dara Gardens is to provide a wide mix of renovated cooperative apartments in an appealing range of prices in a neighborhood that is becoming increasingly well known and sought-out.
The Dermot Company is renovating the studio, 1-bedroom, Junior 4, and 2-bedroom units, as they become available.
The 600 to 950 s/f apartments, which range in price from $99,000 to $200,000, are in an affordable range for young families and professionals looking for a well-maintained and secure building in a gated community.
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|Title Annotation:||The Dermot Company Inc. acquires properties|
|Publication:||Real Estate Weekly|
|Date:||May 11, 2005|
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