The Real Deal New York

Four-building St. Mark’s Place multifamily portfolio under contract for $44M

Properties hold 80 apartments and new Mamoun's Falafel outpost

February 23, 2016 08:00AM
By Mark Maurer Twitter_logo_blue copy

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28-32 St. Mark’s Place in East Village

UPDATED, Feb. 23, 9:04 a.m.: Investor Elliot Sohayegh is in contract to buy a package of four adjacent rental buildings along St. Mark’s Place in the East Village for $44 million, or nearly $760 per square foot, sources told The Real Deal.

The walk-ups at 28-34 St. Mark’s Place, between Second and Third avenues, collectively span 58,000 square feet and 80 residential rental units. Each building boasts a ground-floor retail space, with tenants such as Afghani restaurant Khyber Pass and dollar-slice pizza chain 2 Bros. In December, Mamoun’s Falafel signed a 10-year lease for 1,400 square feet at 30 St. Mark’s Place — and is relocating from 22 St. Mark’s Place.

Asking rents for retail on the block are about $250 per square foot. Meanwhile, a market-rate apartment at one of the buildings rents for $3,200 per month on average, according to StreetEasy. About 40 percent of the apartments are market-rate units; the rest are rent-stabilized.

The deal is expected to close in the next couple months, sources said.

Robert Khodadadian

Robert Khodadadian

The seller is an investor affiliated with the entity St. Marks Assets Inc., which has owned the buildings since the late 1970s, property records show.

Skyline Properties’ Robert Khodadadian, who is brokering the deal, declined to comment, as did Sohayegh.

The buyer-to-be is planning renovations, sources said.

Sohayegh’s Village holdings include a six-story rental building at 107 Christopher Street that he acquired for $11.9 million in 2011, records show.

The properties occupy a stretch of St. Mark’s Place between Second and Third avenues. Elsewhere on the street, a landmarked townhouse at 4 St. Mark’s Place that was once owned by founding father Alexander Hamilton’s son hit the market in November for $11.9 million.