A $30M reality check: Simon Baron slashes price of UWS rental

159-unit building at 166 W. 75th St. now asking $85M 

New York /
Jul.July 21, 2017 08:00 AM

Sellers are used to adjusting their prices in today’s investment-sales market. But a $30 million haircut still stands out.

After putting a 159-unit Upper West Side rental building on the market for $115 million ($1,400 a foot) in late 2015 with little luck, Simon Baron Development is now asking $85 million ($1,044 a foot) for the property, a chop of 26 percent.

The 16-story, 81,399-square-foot elevator building at 166 West 75th Street is known as the AMSTRDM. It has 90 free-market units and 69 rent-regulated units, according to Meridian Investment Sales’ David Schechtman, who has the exclusive on the property with Lipa Lieberman, Abie Kassin, Paul Patafio and Inbal Himelblau-Denman.

“In this market, serious sellers are acutely aware of expectations related to pricing and with more than $15 million in infrastructure and cosmetic improvements we expect investors to greet this offering fervently,” said Schechtman, who added that “the light and air tenants enjoy will be preserved in perpetuity, given the landmark district in which the property resides.”

The contemporary Italian-American restaurant Cesca occupies retail space on the ground floor.

Midtown-based Simon Baron, headed by Jonathan Simon and Matthew Baron, bought the building for $43 million at a foreclosure sale in 2013. At the time, the property was a 214-unit single-room-occupancy hotel.

According to the brokers, the developers put $15 million into converting the SRO units into apartments and upgrading the building, where StreetEasy shows the free-market rentals average $69 per square foot.

The average sales price for multifamily building on the Upper West Side has actually climbed from $709 per square foot during the first three months of 2016 to $787 per square foot in the first quarter of this year, according to Ariel Property Advisors, though the sample sizes are based on a small handful of deals.

Overall, the city’s multifamily investment-sales market was down 43 percent year-over-year during the second quarter to $1.9 billion in transactions, Ariel’s most-recent report shows.


Related Articles

arrow_forward_ios
Two more rent law challenges tossed, landlords reserve hope in appeal
Two more rent law challenges tossed, landlords rest hopes on appeal
Two more rent law challenges tossed, landlords rest hopes on appeal
Purchases across the country rose 0.7 percent in August, easily outpacing estimates by retail analysts. (iStock)
Big month for retail sales bodes well for landlords
Big month for retail sales bodes well for landlords
A rendering of River Ring with Two Trees CEO Jed Walentas (BIG, Getty)
CB1 approves Two Trees’ River Ring, keeping project on pace
CB1 approves Two Trees’ River Ring, keeping project on pace
250 Park Avenue and IWG CEO Mark Dixon (Google Maps, IWG)
IWG to open 58K sf co-working site on Park Ave
IWG to open 58K sf co-working site on Park Ave
Tritec Principal Robert Coughlan with the project (Tritec)
Tritec lands $173M for Bay Shore Residences
Tritec lands $173M for Bay Shore Residences
A recent report by Harvard’s Joint Center for Housing Studies shows mom-and-pop landlords were hit harder than big firms by rental delinquencies. (iStock)
Mom-and-pop landlords, Black tenants hit harder by pandemic: report
Mom-and-pop landlords, Black tenants hit harder by pandemic: report
Deconstruct Podcast
Now streaming: the debut episode of Deconstruct, TRD’s new podcast
Now streaming: the debut episode of Deconstruct, TRD’s new podcast
Jason Pomeranc and 305 West 48th Street (CIVILIAN, Google Maps, Kelleecaitlin/Wikimedia)
Jason Pomeranc to launch new Theater District hotel
Jason Pomeranc to launch new Theater District hotel
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...