Real estate brokerage Marcus & Millichap has arranged the sale of a four-and-a-half-story walk-up building at 458 West 50th Street in Hell’s Kitchen for $3 million, The Commercial Observer has learned.
The 4,923-square-foot property features six units, including a one-bedroom penthouse with a balcony and a first floor two-bedroom with a garden. The rest are full floor, one-bedroom apartments.
The property measures 20 by 47 feet – not ideal for a modernized two-bedroom layout that would maximize returns – and it is in need of a gut renovation. These were two considerable obstacles when marketing the space, which netted approximately $605 per square foot.
“We were able to move a vacant building at a very significant price per square foot, procured an all cash buyer and closed in 10 days from contract signing,” said Joe Koicim of Marcus & Millichap, who arranged the sale with First Vice President of Investments Peter Von Der Ahe and Sean Lefkovits, an associate (Robert Hunter, an associate, was also part of the listing team).
“The time of the essence 2012 closing term was essential to the sellers, as they feared the potential looming capital gains tax increase in 2013,” added Mr. Lefkovits.
Current zoning on the property allows for residential use that can be developed with a commercial component and the building was delivered vacant.
The buyer, a foreign investment fund that specializes in redevelopment opportunities and owns or properties in Brooklyn and New Jersey, plans to develop the property into either residential units or perhaps a single-family unit, despite the allowance for commercial space.
The Midtown West property is located in Hell’s Kitchen, between 9th and 10th Avenues, and within walking distance to many of Manhattan’s most coveted neighborhoods and attractions, including Times Square, the Theatre District, the Garment District, Herald Square, and the soon-to-be Hudson Yards development site.