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

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

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

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


Related Articles

arrow_forward_ios
Accurate CEO Jack Klugmann and the Fairfield, CT Metro North train station (Accurate, Robert Mortell/via Wikimedia Commons, iStock)
NJ developer buys languishing project in Fairfield
NJ developer buys languishing project in Fairfield
Kohl's CEO Michell Glass (Kohl's, iStock)
Kohl’s looking to cash in on $8B real estate portfolio
Kohl’s looking to cash in on $8B real estate portfolio
Sackman Enterprises president Carter Sackman and 15-19 West 96th Street (Sackman Enterprises, Google Maps, iStock)
Fed up Chabad sues Sackman over unfinished condo
Fed up Chabad sues Sackman over unfinished condo
A photo illustration of Times Square (iStock)
Retail asking rents show signs of recovery
Retail asking rents show signs of recovery
SL Green's Harrison Sitomer and 450 Park Avenue (SL Green, Taconic Partners)
SL Green closes on Park Avenue office tower
SL Green closes on Park Avenue office tower
240 Sullivan Street and Sky Management’s Jonathan Ohebshalom (Sky Management, Google Maps, iStock)
Sky buys Greenwich Village mixed-use building in quiet week for i-sales
Sky buys Greenwich Village mixed-use building in quiet week for i-sales
Marble Collegiate Church, HFZ's Ziel Feldman and Vanbarton’s Gary Tischler (Getty, iStock)
Church seeks to escape hellish partnership with HFZ
Church seeks to escape hellish partnership with HFZ
From left: 121 West 26th Street, Watermark’s Brendan Medzigian and Two Kings Principal Christopher Wang (Google Maps, Watermark , LinkedIn)
Watermark Capital sells Holiday Inn in Chelsea for $80 million
Watermark Capital sells Holiday Inn in Chelsea for $80 million
arrow_forward_ios

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

Loading...