Trevi Retail has closed on its $17 million acquisition of 859 Ninth Avenue, a six-story mixed-use building featuring 41 apartments and a retail unit currently occupied by Italian restaurant Puttenesca.
“It is a very desirable neighborhood right now and the property has substantial upside in both the retail component and residential component,” Paul Smadbeck of Massey Knakal, who brokered the sale alongside Chirstoffer Broadhead, told The Commercial Observer. “[Trevi] recognized the upside of the building and the desirability of the location.”
The bidding process garnered 27 offers on the property, which had an asking price of $15.5 million. “It was extremely competitive,” Mr. Smadbeck said of the sales process. “Which I think is indicative of the market’s perception of this neighborhood’s desirability.”
The buyer will pay $590 per square foot for the building, located on the corner of 56th Street and Ninth Avenue, and has eyed upside in the retail component, which is currently undervalued, Mr. Smadback noted.
“This property has a lot of long-term potential. This is a building that we are proud to own,” added Johnny McCarthy, chief investment officer at Trevi Retail, in a statement. Mr. McCarthy did not return requests seeking comment.
Trevi was signed a contract for the property just six days after the bid deadline and the sale was closed on the 20th, a significant selling point for the multi-generational family owner, who had eyed to close the sale by year’s end.
A privately-held real estate investment company, Trevi targets retail and mixed-use acquisitions in the $1 million to $100 million range. The company’s portfolio includes 250 Thompson Street, 785 Madison Avenue, 254 Park Avenue South and others.
Earlier this year, Trevi Retail placed Rockie Gajwani, the company’s founder and chief executive, on administrative leave after he allegedly embezzled up to $2 million from partner Principal Enterprise Capital.