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JLL has been retained on an exclusive basis to arrange for the sale of 370 Lenox Avenue, a 7-story, 74,469 SF elevator building featuring 198’ of wrap around frontage on the corner of Lenox Avenue and West 129th Street. The building represents a rare value-add opportunity consisting of
approx. 55,000 GSF of vacant, apartments above a fully leased retail component in the heart of Harlem’s Lenox Avenue - 125th Street retail corridor.
The property is surrounded by many of Harlem’s best culinary and cultural destinations and benefits from its close proximity to the 125th Street 2/3 Subway Station. Vacant delivery of the residential provides buyers with flexible pathways to create value by either pursuing a condominium conversion or renovation to a high-end rental in a market with significant constraints to future supply. Both the passage of the 2019 changes to the rent laws and the impending expiration of the Affordable New York Program will act as barriers to new construction in the surrounding area.
In its current configuration the builidng contains 7 stores, 1 community facility space and 45 vacant apartments. Current ownership has prepared plans calling for the reconfiguration of the residential component to 55 apartments. The proposed unit mix consists of a 1, 2- and 3-bedroom units ranging in size from 550-1,114 SF. The 4,496 SF of retail space has been recently leased to a quality mix of neighborhood retailers including Harlem Pilates, Chick n’ Cone, Lenox Coffee, Handpull Noodle, Taste & Taste, Perfect Brows and Felix Gourmet. Each store contains approx. 300-600 SF of below grade storage space. All of the retail leases have been signed in the past two years with average rents of approximately $102.09 / NRSF providing stability at the base
of the building.
Central Harlem has weathered the pandemic and poised to benefit from quickly evolving recovery. The Lenox Avenue - 125th Street retail corridor proved its resilience throughout the pandemic and even seen an influx of new, post-pandemic retail tenancies. Both Target and Trader Joe’s signed post-COVID leases for new store openings on 125th Street, illustrating the high level of confidence that corporate retailers have in the area’s future as a thriving retail hub. Limited vacancy and new restaurant openings along Lenox up to 130th Street position the asset to benefit from a growing retail presence in the neighborhood.
Repositioning costs will be offset by a number of recent capital improvements including a beautifully restored façade, upgraded dual fuel boiler, new electric & gas service to each apartment and a modernized elevator. In addition, the property benefits from its corner location on a double-wide avenue which provides quality light and air to all apartments. The roof offers excellent views of the surrounding neighborhood and poised for repositioning to support curated outdoor spaces. The property will attract an array of purchasers looking to acquire a value-add
opportunity in a highly supply constrained neighborhood. The property is being offered on an as-is where is basis.
198’ of frontage, ~74,469 GSF with a full cellar and a partial sub-cellar
55,147 GSF of fully vacant residential space waiting to be repositioned with ample excess space to add amenities on the ground floor, cellar and roof top.
CASH FLOWING RETAIL
Retail has been fully leased to a strong mix of neighborhood tenants at an average of ~$100 PNSF
LOCATION & CONNECTIVITY
Four blocks from the 125th Street 2-3 subway station providing access to Midtown in under 25 minutes – 2 blocks from Sylvias & The Red Rooster
Well positioned for a post-pandemic recovery. The next owner will benefit from a strong rebound in residential activity with the ability to reposition the building to meet future demand
MULTIPLE EXIT STRATEGIES
Current owner has plans in place to renovate the residential portion of the building and in
the process create 10 new apartments. Future owners could choose to sell the apartments as condominiums or renovate into high end rentals
BARRIERS TO FUTURE SUPPLY
Rent regulation, The HSTPA and potential sunsetting of Affordable New York Program will limit future construction conversion of housing in the neighborhood