Mixed-use building near NoMad Hotel trades for $8.7M

October 28, 2013 08:18AM

An eight-unit mixed-use building near the NoMad Hotel has traded hands for $8.65 million. The 14,739-square-foot property at 15 East 31st Street has five commercial units and three residential units and sold at a capitalization rate of 3.1 percent, a Marcus & Millichap team told The Real Deal exclusively.

The asking price for the property, located between Madison and Fifth avenues, was $8.995 million, according to the offering memorandum. Marcus & Millichap’s Joseph Koicim, who brokered the transaction along with colleagues Peter Von Der Ahe and David Lloyd, said the buyer was a European private investment group who did the deal at a “record low cap rate,” but declined to name the group. The seller was an LLC listed as “15 East 31st Street Company.”

“The buyer would reposition the eight-story building as a multifamily asset and hold while the neighborhood continues to flourish,” Lloyd said. The rapid development in the area — including that of a hotel project right next door – had attracted multiple buyers, he added. – Hiten Samtani