- Address: 49 Essex Street, New York, NY 10002
- Asking Price: $3,700,000 ($217,647/Unit)
- Cap Rate: 5.95%
- Sale Type: Investment
- Property Type: 2-Star Mid-Rise Apartments
- Location: Central Business District (CBD)
- Units: 17
- Average Unit Size: 383 sq. ft.
- Stories: 6
- Class: C
- Gross Building Area (GBA): 9,725 sq. ft.
- Typical Floor Area: 1,738 sq. ft.
- Number of Buildings: 1
- Units per Acre: 340/AC
- Market Segment: All
- Rent Type: Market/Affordable
- Affordable Type: Rent Stabilized
- Affordable Units: 8
Key Features:
Prime Lower East Side Location:
49 Essex Street is situated in the heart of the Lower East Side, an area known for its vibrant arts scene, trendy cafes, and eclectic mix of dining and nightlife options. The neighborhood has become one of New York City’s most sought-after destinations, ensuring strong demand from tenants and future potential for property appreciation.
Attractive Mixed-Unit Composition:
This property offers a mix of 17 units, including 8 rent-stabilized units, which provide long-term affordability and a stable income stream. The remaining market-rate units offer the potential for higher rents and future rent increases. The average unit size of 383 sq. ft. is ideal for the Lower East Side market, where smaller units are in high demand.
Strong Cash Flow and Cap Rate:
With a cap rate of 5.95%, this property presents a solid return on investment. The combination of affordable and market-rate units ensures diversified income, while the rent-stabilized units provide a stable and predictable revenue stream. This mix makes it an appealing option for investors seeking both immediate income and long-term stability.
Class C Building with Future Upside:
As a Class C building, 49 Essex Street offers the potential for value-added improvements. This provides an excellent opportunity for investors to enhance the property, increase rents, and boost returns. The building’s 6 stories and typical floor area of 1,738 sq. ft. provide flexibility for future renovations or reconfiguration to maximize the property’s income potential.
Affordable Housing Opportunities:
The inclusion of 8 rent-stabilized units provides an important aspect for tenants seeking affordable housing in Manhattan, further ensuring stable occupancy rates and strong tenant retention.
Conclusion:
49 Essex Street offers a rare and attractive investment opportunity in one of Manhattan’s most up-and-coming neighborhoods. With its blend of market-rate and rent-stabilized units, solid cash flow, and long-term potential for value appreciation, this property is an excellent addition to any real estate portfolio. Whether you’re an experienced investor or new to the market, 49 Essex Street presents an excellent opportunity to capitalize on the dynamic Lower East Side real estate market.
