Three Kips Bay resi buildings ask $57M

Slate and Madison are selling contiguous Third Ave. properties in a joint venture
October 23, 2017 04:35PM

A joint venture between Slate Property Group and Madison Realty Capital has put a three-building package in Kips Bay on the market for $57 million.

Together the buildings at 489, 493 and 495 Third Avenue, at the northeast corner of East 33rd Street, have a total of 43 Apartments And Eight Street-level storefronts, according to Real Estate Alert. The ask works out to roughly $1.3 million per unit.

Only one storefront and two apartments are vacant. Eleven units are under some form of rent regulation. But the average rent of the market-rate units is $4,500, according to REA. Marcus & Millichap is marketing the sale on behalf of Slate and Madison.

The retail spaces, where the largest tenant is Mercury Bar, and a rooftop antenna generate some $113,000 of annual revenue, marketing materials claim.

According to property records, Silverstone Property Group bought the buildings in 2013. Slate’s founding principal Martin Nussbaum founded Silverstone with Madison principals Josh Zegen and Brian Shatz in 2009. Nussbaum left in 2013 and Silverstone is now Madison’s property management arm.

In August, Slate picked up a 32-unit West Village rental for $21 million, paying over $1,000 a square foot. Madison, which is both a lender and a developer, recently went into contract on an industrial site in Jamaica with partner Artemis Real Estate Partners for $78 million. [REA] – Christopher Cameron