Hamilton Heights Sale Highlights Multifamily Strength in Northern Manhattan
Al Barbarino Jan. 28, 2014, 7:30 a.m.
Ariel Property Advisors has arranged the sale of two five-story multifamily buildings at 453 West 152nd and 465-467 West 152nd Street in Hamilton Heights for $9.25 million, The Commercial Observer has learned.
The firm has both witnessed and helped fuel a heating of the Harlem market as landlords and developers set their eyes further north into Northern Manhattan than they have in years.
“This is another situation where the buyer perceives a value-add opportunity, anticipating an increase in rents both in the near- and long-term,” said Ariel’s Victor Sozio, who arranged the sale with Shimon Shkury, Michael Tortorici, and Jesse Deutch. “This little pocket of Harlem has seen great activity in the last six to 12 months.”
The walk-up at 465-467 West 152nd Street features 36 residential units and a super’s unit in the basement, with 15 three-bedroom units, 10 two-bedrooms, and 11 one-bedrooms, 25 of which are rent stabilized, two rent controlled, and nine free market. The walk-up at 453 West 152nd Street contains 16 residential units, 14 of which are three-bedrooms, with six rent stabilized units and 10 have free market.
The multifamily asset class is particularly hot, with capitalization rates below five percent and prices per square foot regularly peaking above $200, Mr. Sozio said, noting that while the rental market is soaring, condo development is on its way up.
Last month Ariel Property Advisors sold a portfolio consisting of three mixed-use properties at 2245, 2259, and 2285 Adam Clayton Powell Jr. Boulevard, between West 132nd and West 135th Streets, and in November it was the sale of two adjoining six-story multifamily properties at 556-562 West 126th Street for $15 million.