245 Eldridge Street

New York, NY

For Sale

$18,400,000

OVERVIEW

LOCATION:
245 Eldridge Street, New York, NY 10002

Neighborhood: Lower East Side

Asset Type: Mixed Use

Square Feet: 14,161

Stories: 6

Residential Units: 10

Commercial Units: 2

 

Description

Besen & Associates, as exclusive agent for Ownership, is pleased to offer for sale 245 Eldridge Street, New York, NY 10002 (the “Property”), a 37-foot wide, six-story building with ten free market units and two retail spaces. 245 Eldridge Street was built in the early 1900’s and the previous ownership gut-renovated the Property in 1982. Current ownership purchased the Property in 1999 and has updated and renovated all of the apartments. This 14,161± SF property is located between East Houston Street and Stanton Street in Manhattan’s Lower East Side (“LES”), one of the city’s trendiest and most desirable neighborhoods for millennials, students, and young professionals as well as a primary destination for culture, entertainment and nightlife.

 

The Property offers tremendous upside to an investor. The residential units at 245 Eldridge feature generous layouts and are currently renting at 25% below market.  In addition, the two retail tenants are renting at rates that are 40% below market.  The Flower Girl shop crafts striking flower arrangements and bouquets for an array of fashionable clientele (i.e. Vogue, Chanel, Marc Jacobs).  Award-winning bartender Kenta Goto opened Bar Goto in 2015 and the bar has since been featured in The New York Times and The Food Network, among other prominent outlets.  Together, these spaces occupy 2,360± of prime ground floor retail space. 

 

The LES is rich with history and for most of the 20th Century, the LES was the first stop for immigrants looking for affordable accommodations in tenements.  Over the past 20 years, the neighborhood has seen widespread gentrification, with new rental and condo developments, hip bars and restaurants, chic hotels, independent boutiques and art galleries.  Part of the LES charm and attraction has been its ability to maintain it’s “edge,” and hang on to its vibrant past with its old-school eateries, retro businesses, and preserved public spaces. As the LES continues to develop, 245 Eldridge Street is well positioned to take advantage of the continued high demand for this neighborhood, the increasing market rents, and the opportunity for an investor to reposition the building and capture the significant upside potential.

 

 

FREE MARKET BUILDING

 

245 Eldridge Street is a free market building giving an investor a great deal of flexibility.  There is strong demand for boutique buildings which offer amenities and privacy.  Condos prices continue to be strong downtown with average prices in the $1,800-$2,000± per square foot range. The combination of the spacious units and prime location make the Property an excellent candidate for a condo conversion.

 

 

SIGNIFICANT RENTAL UPSIDE

 

The Property’s residential units have an average rent per square foot of $51±. The average market rent per square foot is approximately $65-$75± resulting in rental upside of 30-40%.  The apartments have spacious layouts with the capacity to add bedrooms in all of the apartment lines.  In addition, an investor could reconfigure the basement space and add convenient amenities including a gym and/or a bike room.

 

The stores have an average rent per square foot of $45±.  The average market retail rent per square foot is approximately $65-$80± resulting in rental upside of 45-65% upon lease expiration.

 

 

TENANT PASS-THRU EXPENSES

 

The property features individual gas heating systems for each apartment.  The residential tenants pay for their own heat resulting in lower operating expenses for the owner. The commercial tenants pay 5% of the total real estate tax bill in addition to gas, water & sewer, heat, and electricity.

 

 

EXCELLENT LOCATION

 

Located at the nexus of Manhattan’s Lower East Side (LES) and East Village (EV), 245 Eldridge Street is situated just south of East Houston Street.  The LES is a magnet for millennials, students, and young working professionals.  The neighborhood is filled with hip restaurants and bars, eclectic shops, chic boutiques, music venues and art galleries. The LES has gentrified significantly over the past ten years with many new residential developments including Essex Crossing, a new unprecedented development which will spread over 1.9 million square feet and will include 1,000± new residences, 450,000± square feet of retail, 400,000± square feet of office space, community attractions, and green spaces. The development is expected to be completed by 2024.

 

 

CONVENIENT TRANSPORTATION ACCESS

 

The Property is within walking distance of the 2nd Avenue subway [F & M] trains, the B, D, F, M on Broadway and Lafayette, the N,Q,R,W on Prince Street, the 4 & 6 trains on Spring Street, the F train on Delancey Street, and the J, M, Z on Essex Street. Crosstown MTA buses along East Houston include the M9, M15, & the M21. Additionally, the Property provides easy access to the FDR Drive, the Williamsburg Bridge and the Brooklyn Bridge.

 

Nearby Transportation