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Zelman asking north of $35M for East Village rental

30K sf property on East 12th Street marketed as a long-term hold

From left: 531-533 East 12th Street in East Village and Lois and Martin Zelman
From left: 531-533 East 12th Street in East Village and Lois and Martin Zelman

Zelman Enterprises, a Great Neck-based real estate investment firm, is looking to sell a seven-story East Village rental building for north of $35 million.

The 30,000-square-foot elevator property at 531-533 East 12th Street, Between Avenue A and Avenue B, holds 34 apartments and a 2,000-square-foot office space. Robert Zelman purchased the building in 2012 from Emmut Properties for $16.6 million.

Ackman-Ziff Real Estate’s Marion Jones and Alan Goodkin are marketing the building, built in 2009, as a long-term hold. There is no formal asking price, but it is expected to sell in the mid-to-high $30 million range.

“There is near-term upside when you consider that elevator buildings in the East Village typically command rent in the high-$70s to mid-$80s per square foot, and the average rent here is $56 per square foot,” Jones told The Real Deal. “Nearly half of the units have private outdoor space, a rare amenity that increasingly commands premium rents.”

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The Zelman family made headlines in recent months for a legal dispute over whether the wife of veteran investor Martin Zelman, Robert’s father and the firm’s founder, should receive $10 million she was promised under the couple’s prenuptial agreement 15 years ago.

Martin, a resident of Palm Beach, Fla., is in his late 80s and suffers from dementia. An appeals court in July overturned a ruling that forced Martin’s wife out of their condo. The court ruled that she will receive the $10 million, the Palm Beach Post reported.

Martin’s son Robert had initially filed a petition last year asking that Martin be declared incompetent and that Robert and his sister be appointed guardians to handle his affairs.

A representative for Zelman Enterprises could not be reached for comment.

Ackman-Ziff added to its investment sales team last week with the hiring of top Avison Young broker Jason Meister, as TRD reported.

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