LichtensteinRE Closes $11M All Cash Sale
- Dec 08, 2017
LichtensteinRE has brokered the sale of three contiguous residential buildings in the Bronx’s Tremont neighborhood for $10.7 million all cash. The transaction closed at a cap rate of 4.5 percent and the sale price equated to an average of more than $150,000 per unit. The seller, private investor Brian Lefkowitz, originally acquired the assets earlier this year in July. Lefkowitz also paid $10.7 million and financed the acquisition with a $6.6 mortgage held by Customers Bank, according to public records.
Located at 2018, 2020 and 2022 Monterey Ave., the 55,272-square-foot, 70-unit property is located less than half a mile from the Metro-North Railroad’s Tremont station and within two blocks of multiple bus routes. Additionally, Interstate 95 runs approximately one half mile south of the property. The five- and six-story buildings are located in a residential area with many retail options within walking distance.
Built in 1928, all three buildings were extensively renovated in 1993 and 2013. The reported rents for residents of the apartment community are extremely low for the neighborhood, averaging $844 per month, while the predominant rents in the area equal almost $1,600 per month.
“New rents for vacant apartments that are renovated are already going up to $1,200. The profitability outlook for this investment is extremely bright for even greater increased future net income,” said Andrew Lichtenstein, president of LichtensteinRE, in prepared remarks, who procured both the buyer and seller.
The Bronx has recently been booming with investment opportunities. In October, Emerald Equity secured $129 million in Freddie Mac Small Business Loans for a 850-unit portfolio in the Bronx.
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