|Number of units||24|
JLL has been retained on an exclusive basis to arrange for the sale of 235 & 239-241 East 39th Street (The “Properties”). The three buidings are approximately 12,942 gross square feet and are centrally located on the North Side of East 39th Street between Second Avenue and Third Avenue. In total, there are 24 residential units with a unit mix of seven (7) 1-bedrooms and
seventeen (17) studios across the portfolio. Of those units, 79% are free market and 21% are rent stabilized (19 FM / 5 RS). The in-place average rents are approximately 35% below market, thus offering a significant potential to push the rents once renovation is complete. Furthermore, each of the properties is Tax Class 2B which significantly enhances the value while severely restricting future real estate tax increases. As a result, the portfolio offers an investor the ability to implement a complete value-add strategy throughout the buildings to push revenue while limiting the amount of potential expense increase due to the tax class protection.
The properties are conveniently located in the heart of Midtown East and border the popular Murray Hill neighborhood. The buildings are walking distance from some of the City’s greatest attractions and transportation hubs such as Grand Central Station & Bryant Park while also being positioned in the heart of New York’s busiest central business district. This excellent proximity to Grand Central provides tenants with direct access to the 4,5,6,7 and S trains as well as convenient access to the Midtown Tunnel. 235 & 239-241 East 39th Street represents a unique opportunity to acquire well-located, value-add, properties that are tax class protected and thus positioned to benefit from the resurgence of New York City.