Hell's Kitchen Brownstone: 5 Free-Market Apartments

About this opportunity

A brownstone on a tree-lined street in the heart of Hell's Kitchen, walking distance from Times Square and 1 block from Restaurant Row. The 6,500 sq ft building has more than 8,000 sq ft of additional unused FAR (air rights). It is very close to the A, B, C, D, E and 1 trains.

There are 5 stories with 5 large apartments, all fully renovated to a high standard, with separate meters for electric, heat and hot water. All are free-market rentals, and all are currently below market, since rents were reduced during the Covid pandemic. Current rent is $28,845 a month; the seller puts the pro forma at $36,550 a month. Units have in-unit washers and dryers and stainless steel appliances, at least one unit has access to a private garden, and the building has a full video intercom system.

The finished basement is not in use and could add rental income as storage or amenities such as an exercise room or game room. Even on the current rent roll the cap rate is above 4%, where New York City is typically 3% or lower. Current leases end on staggered dates; ask for the rent roll. Potential, not current results: the seller says that with pro forma rents and use of the basement, a cap rate of 6% or higher is achievable.

Highlights

• 18 bedrooms · 5 baths
• 5 renovated free-market apartments, separately metered
• Current rent $28,845/mo; pro forma $36,550/mo (seller estimate)
• Cap rate above 4% now; 6%+ potential (seller estimate)
• 6,500 sq ft plus 8,000+ sq ft unused FAR / air rights
• Near Times Square, Restaurant Row and the A/B/C/D/E/1 trains
• In-unit washer/dryer, garden access, finished basement
• Video intercom

Financial details

Asking price

$6,490,000

Real estate

Included

Monthly rent

$28,845

Building

6,500 sq ft

Stories / units

5 stories, 5 apartments (18 bedrooms, 5 baths)

Rent type

All free market; currently below market

Current rent

$28,845/mo

Pro forma rent (seller estimate)

$36,550/mo

Cap rate

Above 4% on the current rent roll

Potential (seller estimate)

6%+ cap rate with pro forma rents and basement use

Unused FAR / air rights

8,000+ sq ft

Meters

Separate for electric, heat and hot water

Basement

Finished, not currently in use

Leases

Current leases end on staggered dates; ask for the rent roll

Figures are provided by the seller and have not been independently verified. Buyers should perform their own due diligence.