The Real Deal New York

Harlem sees priciest trade at $22M

October 28, 2009 02:49PM
By Adam Pincus

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From left: 1428 Fifth Avenue and a rendering of a proposed development on the vacant site.

Affordable housing builder L & M Development Partners and a city housing fund closed on Harlem’s highest priced asset purchase so far this year, according to Massey Knakal Realty Services, paying $21.925 million for an apartment building and an adjacent vacant parcel.

The next two biggest deals this year traded for $12.5 million each — 169-75 East 101st Street and 604 West 131st Street, records from Massey Knakal, which represented the seller, Manhattan-based developer Metrovest Equities, show.

L & M Development and the city’s Partnership Housing Development Fund closed on the 120-unit, six-story elevator building at 1428 Fifth Avenue as well as the neighboring development site, both between 116th and 117th streets, on September 26, city property records published Monday say.

Despite being a top price for the year in the market, it was less than half the $58 million Metrovest wanted for the site in 2008.

Outside the city, Metrovest recently changed its development plans at a Jersey City residential building, offering fewer units than originally projected but each far larger, The Real Deal reported this month.

The Harlem sale was filed in two separate transfer reports, allocating $16.725 for the apartment building, and $5.2 million for the development parcel, the city records show.

The vacant parcel currently has development rights for an approximately 180,000-square-foot building, but Shimon Shkury, a partner at commercial sales firm Massey Knakal who worked on behalf of the seller, said it was possible to increase the buildable area to about 260,000 square feet.

That would put the price per developable foot at a bargain cost of $20 per foot.

“It tells me there are buyers out there that are interested in purchasing income producing properties,” Shkury said. He added there were multiple bidders on the parcels, including other affordable housing developers.

L & M Development and the city did not immediately return calls for comment.

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