EXECUTIVE SUMMARY
Besen & Associates, as exclusive agent for Ownership, is pleased to offer for sale 506 East 6th Street, New York, NY 10022 (the “Property”) located in the East Village neighborhood of New York City.
The existing Property consists of a 5-story walkup building with 14 apartments (11 FM / 3 RS), totaling approximately 6,825± square feet. Built circa 1920 and renovated in 1987, the Property is ideally located on the south side of East 6th Street between Avenue A & Avenue B in the heart of the East Village, and within walking distance of the M14A bus, the L train on 14th Street, the 6 train at Astor Place, and the 2nd Avenue F train along Houston Street.
The 100% occupied Property, which is situated one block south of Tompkins Square Park and minutes from the FDR Drive, is comprised of nine (9) studios and five (5) one-bedroom residential units. The studios are averaging $1,700/month and the one-bedroom units are averaging $2,375/month, which represent a 25%- 30% discount to current market rates. The 14 apartments overall are renting at well below market rates with an average monthly rent of $1,950, offering significant upside to new ownership.
In summary, the in-place rents at the Property are substantially below market and the building is in good physical condition and has been very well maintained, evidenced by its continuous 100% occupancy. As the East Village continues to develop, 506 East 6th Street is well positioned to take advantage of the continued high demand for this neighborhood, the increasing market rents, and the opportunity for an investor to reposition the tenancy and capture the upside potential.
LOCATION
Manhattan’s East Village is one of the city’s trendiest and most desirable neighborhoods for millennials, students, and young professionals as well as a primary destination for culture, entertainment and nightlife. Considered one of the prime residential neighborhood in New York City, it’s boundaries include Gramercy Park and Stuyvesant Town to the north, the Lower East Side to the south, and Greenwich Village to the west. The East Village is still considered to be the area “East of Broadway, to the East River, between East 14th Street and Houston Street”.
The area was once generally considered to be part of the Lower East Side, but began to develop its own identity and culture in the late 1960’s, when many artists, musicians, students and hippies began to move into the area. The neighborhood has become a center of the counterculture in New York, and is known as the birthplace and historical home of many artistic movements, including punk rock and the Nuyorican literary movement.
Over the past 20 years, the neighborhood has seen widespread gentrification, with new rental and condo developments, hip bars and restaurants, and independent boutiques and art galleries. Part of the neighborhood charm and attraction has been its ability to maintain it’s “edge,” and hang on to its vibrant past with its old-school eateries, retro businesses, and preserved public spaces. The East Village will always be known for its diverse community, vibrant nightlife and artistic sensibility. ASKING PRICE: $6,250,000 $916 PSF | $446,500 PPU | 3% Cap Rate | 19x GRM INVESTMENT HIGHLIGHTS
• The Property represents an exceptional opportunity to acquire a pre-war residential asset in one of Manhattan’s premier and most desirable residential neighborhoods
• 5-story walkup with 14 spacious residential units (11 FM & 3 RS)
• 100% occupancy providing stable cash-flow
• Tremendous upside potential – Significantly below market rents (25%-30%)
• Well-maintained property requiring minimal near-term capital and low maintenance costs
• Within walking distance of the L train on East 14th Street, the 6 train at Astor Place, the 2nd Avenue F train along Houston Street and the MTA bus stop M14A around the corner
• Minutes from the FDR Drive, Williamsburg Bridge and BQE for vehicular access
• Located 1-block from Tompkins Square Park
• The East Village is a magnet for millennials, students, and young working professionals and the neighborhood is filled with hip restaurants and bars, eclectic shops, chic boutiques, music venues and art galleries
506 East 6th Street, New York, NY 10009 | 3 PROPERTY OVERVIEW – 506 EAST 6th STREET
Neighborhood East Village
Block / Lot 401 / 13
Lot & Built Size 25’ x 97’ (built: 25’ x 54’)
Gross Building Area 6,825± SF
Stories / Building Type 5-Story Walkup / C4
Total Apartments 14 Units
Zoning R7B
FAR (built / allowed) 2.81 / 3.0
Year Built Circa 1920 – Altered in 1987
Assessment & Taxes (18/19) $806,940 / $102,634 LOCATION MAP
Ippudo NY Village East Cinema
M8 Momofuku Noodle Bar
Cooper Square STOMP M14A
M15 Tompkins Square Park
M8 M15 Bowery Electric 506 East 6th Street
M14A Key Foods M9
Upright Citizens Brigade
New York Sports Club Rockwood Music Hall Nuyorican Poets Cafe
506 East 6th Street, New York, NY 10009 | 5 LOCATION OVERVIEW
East Village is a neighborhood in the New York City borough of Manhattan. Its boundary to the north is Gramercy Park and Stuyvesant Town, to the south by the Lower East Side, and to the east by the East River. Generally, although definitions vary on the neighborhood's exact street boundaries, the East Village is considered to be the area east of Broadway to the East River, between 14th Street and Houston Street.
The area was once generally considered to be part of the Lower East Side, but began to develop its own identity and culture in the late 1960s, when many artists, musicians, students and hippies began to move into the area, attracted by cheap rents and the base of Beatniks who had lived there since the 1950s. The neighborhood has become a center of the counterculture in New York, and is known as the birthplace and historical home of many artistic movements, including punk rock and the Nuyorican literary movement.
East Village is still known for its diverse community, vibrant nightlife and artistic sensibility, although in recent decades it has been argued that gentrification has changed the character of the neighborhood.
506 East 6th Street TRANSPORTATION
SUBWAY
Just a short walk from the property are multiple trains stations including: • F at 2nd Avenue • L at 1st Avenue • F, J, M, Z at Delancey St – Essex St • 6 at Astor Place • L at 3rd Avenue
BY CAR
Columbus Circle 28m by car Grand Central 15m by car Union Square 12m by car Wall Street 12m by car
AIRPORTS
Three major airports are located within xx miles of the Property. LaGuardia and John F. Kennedy international airports are both within the New York City borough of Queens, while Newark Liberty International Airport is situated across the Hudson River in New Jersey.
BIKE & BUS
• M14A on Avenue A • M15 on 1st & 2nd Avenue • M9 on Avenue C • M8 on 8th Street
CitiBike locations on 6th and Avenue B, 7th and Avenue A
COMMUTE TIMES
Columbus Circle 34m by train Grand Central 29m by train Union Square 9m by train Wall Street 12m by train SUBWAY MAP
BUS MAP
506 East 6th Street, New York, NY 10009 | 8 CONFIDENTIALITY & DISCLAIMER
The information contained in this listing (“Listing”) is confidential, furnished solely for the purpose of review by a prospective purchaser of the following property: 506 East 6th Street, New York, NY 10009 and is not to be used for any other purpose or made available to any other person without the express written consent of Besen & Associates, Inc. or Owner. The material is based in part upon information supplied by the Owner and in part upon information obtained by Besen & Associates from sources it deems reliable. Summaries of documents are not intended to be comprehensive or all inclusive, but rather only an outline of some of the provisions contained therein. No warranty or representation, expressed or implied, is made by Owner, Besen & Associates or any of their respective affiliates, as to the accuracy or completeness of the information contained herein or as to engineering or environmental matters. Prospective purchasers should make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, including inspections.
This Listing contains selected information pertaining to the Property and does not purport to be all-inclusive or to contain all of the information a prospective purchaser may desire. Graphics are only a representation of property features, are not to scale and are subject to change. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition and other factors beyond control and are, therefore, subject to material change or variation. An opportunity to inspect the Property will be made available to qualified prospective purchasers.
In this Listing, certain documents, including leases and other materials, are described in summary form. The summaries do not purport to be complete or necessarily accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents. This Listing is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by Besen & Associates or Owner. Each prospective purchaser is to rely upon its own evaluation as to the advisability of purchasing the Property described herein.
Owner and Besen & Associates expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to terminate discussions with any party at any time with or without notice. Owner shall have no legal commitment or obligation to any purchaser reviewing this Listing or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by Owner and any conditions to Owner’s obligations there under have been satisfied or waived. Besen & Associates is not authorized to make any representations or agreements on behalf of Owner.
This Listing is the property of Besen & Associates and may be used only by parties approved by Besen & Associates and Owner. The Property is privately offered and, by accepting this Listing, the party in possession hereof agrees (i) to return it to Besen & Associates immediately upon request of Besen & Associates or Owner and (ii) that this Listing and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Listing may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Besen & Associates and Owner. The terms set forth above apply to this Listing in its entirety.
506 East 6th Street, New York, NY 10009 | 9
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Eric Tiefen Shlomo Gelernter Associate Senior Director (646) 472-5309 (212) 951-8407 [email protected] [email protected]
Paul J. Nigido Jared Rehberg Senior Financial Analyst Marketing Manager (646) 424-5350 (646) 424-5067 [email protected] [email protected]
Besen & Associates | 381 Park Avenue South, 15th Floor | New York, NY 10016 | (212) 689-8488