USAA looks to sell 280-unit rental in Hell’s Kitchen

Sources say 535 West 43rd St. could be valued at $230M

TRD New York /
Oct.October 04, 2017 12:20 PM

535 West 43rd Street and USAA’s Len O’Donnell

A partnership led by the real estate arm of USAA is looking to sell its 280-unit rental building at 535 West 43rd Street.

USAA Real Estate Co., along with DHA Capital and Houston-based Patrinely Group, is valuing the property at an estimated $821,000 per unit, or roughly $230 million for the property, Real Estate Alert reported.

The developers completed and delivered the building last year. Cushman & Wakefield is marketing the 14-story building between 10th and 11th avenues, which is 90 percent occupied and continues to lease up.

A buyer’s initial yield would clock in at roughly 4.25 percent, according to REA, and bidders are being told they could quickly boost that figure by stabilizing occupancy at 97 percent. The property has a 20-year tax abatement that expires in 2036. It includes 62 units set aside as affordable housing, with rents averaging just under $1,000 per month. Rents for the market-rate units average $4,400 per month. [REA] – Rich Bockmann

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