Buyer with eye on conversion pays $22.25M for Little Italy building

By Adam Fusfeld | December 21, 2011 04:50PM

Clockwise from top left: Tom Brady of Town Residential, 133 Mulberry Street and Josh Goldflam, managing principal of HighCap Group
A developer has purchased a six-story mixed-use building in Little Italy for $22.25 million with tentative plans for a condominium conversion in a deal that closed Dec. 9, according to representatives on both sides of the deal.

Located at 133 Mulberry Street, between Grand and Hester streets, the 41,900-square-foot elevator building has 16 fully occupied market-rate residential rental units on top of two floors of commercial space, according to Tom Brady, the Town Residential agent who listed the property for Long Island-based seller AM Manhattan Realty, LLC. The 14,000-square-foot commercial space is occupied by Italian restaurant SPQR. A person who answered the phone at the restaurant said it has been there for about five years.

The buyer was a local landlord, represented by Josh Goldflam and Michael Ferrera of the HighCap Group. Goldflam, a managing principal, would not disclose the identity of the buyer but confirmed he was considering a condo conversion.

“He plans to keep it as is for a while,” he said, “but has tentative plans for a condominium conversion down the road.” The conversion would encapsulate the residential units and leave the space for retail.

The price was 13.5 times the gross rent rate, according to Goldflam, and represented a capitalization rate of 5.

Brady, who is also listing another owner’s property down the block at 125 Mulberry Street, said there was heavy interest in 133 Mulberry since he began listing it for $29.5 million in June.