Marcus & Millichap has arranged the $5.1 million sale of a 6,270-square-foot multifamily building at 31 West 87th Street, which sat on the market for two years before the firm was called in, The Commercial Observer has learned.
The five-story building is located in the Upper West Side, just steps from Central Park, between Central Park West and Columbus Avenue – among the selling points that the firm didn’t shy away from when arranging a competitive bid for the property, hashed out between a handful of investors with their eyes on the coveted neighborhood.
“Our track record in selling multifamily buildings with rent-controlled tenants is what led the seller to hire us, and we were able to get the job done,” said Peter Von Der Ahe of Marcus & Millichap, who arranged the sale with Scott Edelstein and Sean Lefkovits.
The building features four units, one of which is a triplex with a garden – something of a rarity for the neighborhood. It has 20 feet of frontage on West 87th Street, and in addition to the triplex (which also features a finished basement) has a one five-bedroom duplex with a terrace, one three-bedroom, and a studio.
“When the seller came to us, he had tried unsuccessfully to sell the property on his own and with another brokerage company,” Mr. Lefkovits said. “We were quickly able to overcome objections from a rent-controlled tenant and achieve a sale price of over $800 per square foot.”
Mr. Lefkovits said a rent-controlled tenant in the building refused to move out, but the firm was able to market the property, tenant included, as a long-term play, with a Canadian investor ultimately beating out the competition.
“We had a lot of interest in this property, both from local and foreign investors, as well as exchange buyers,” he said. “It’s prime location, a clean prime property with rare garden space, and we were able to create a competitive environment for the seller.”
The seller, a local investor who was unavailable for comment, purchased the property in December 2005 for $4.6 million and made renovations to the building, including a new polished staircase and sleek, refinished hallways.
The Upper West Side, boasting a mix of townhouses, pre-war cooperatives and luxury condominiums, is among the most coveted residential neighborhoods in the city.
“The selling price, usually reserved for properties with free market potential, is indicative of the strong market and high demand, which helped push up the price,” Mr. Lefkovitz said.