MEATY DEAL - By Lois Weiss
Wednesday, November 14, 2007 - A six-story walkup apartment building located east of the Meatpacking District was sold for more than the asking price for $14.05 million all cash.
344 West 14th Street is a 50' x 90' property that closed for 33x rent roll in an area which has become a destination location for fashion, nightlife and shopping. Located on West 14th Street between 8th and 9th Avenues, diagonal from the future Apple Store, the 20,334 sf property is composed of 25 units comprised of eight free market, 12 rent stabilized, four rent controlled and one super's apartment. The units are a mix of two- and three-bedrooms. Of those units, the ground floor would be ideal for conversion to retail.
The property contains tremendous upside as the existing rent per net square foot for the regulated units is about $14, or $931 per month, which is a fraction of the market average. It also boasts an additional 10,759 sf of air rights. The transaction occurred at a capitalization rate of 1.83% and a gross rent multiple of 32.85. The property sold for $690.96 per square foot.
"The Meatpacking District has become one of the most sought after neighborhoods downtown. Properties are rarely offered, so it's no surprise that we were overwhelmed with interest," said Massey Knakal Partner/Managing Director James Nelson, who exclusively represented the seller with broker Nikolay Diankov. Jordan Platt of Kaled Management acted as a consultant in the transaction.
Bradford B. Lavendar, Esq. of Bryan Cave LLP was the buyer's attorney and Dennis Konner of Thelen Reid Brown Raysman & Steiner was the seller's attorney.