A pre-war Upper East Side rental building that just hit the market could draw $220 million, real estate experts predict, because of its potential to be turned into condominiums and the value of its prime 10,000 square feet of Madison Avenue retail space, according to Crain’s.
“There is a limited amount of properties on the market in general so investor interest should be through the roof for something like this,” Dan Fasulo, managing director at Real Capital Analytics, said of the 11-story property at 11 East 68th Street, which is owned by Abro Management. The building is considered a perfect target for conversion given the lack of pre-war condos in the city.
Fasulo warned that there may be numerous rent-controlled or rent-stabilized units at the property, which can complicate conversions. However, sources told Crain’s that most of the units were market-rate. Abro could also opt to sell the retail portion of the building as demand for retail condos has been strong, Fasulo said.
Eastdil Secured is marketing the property. [Crain’s]