29-Unit New Construction Portfolio
186 & 194 Herkimer Street
Closed 09/08/2016 at
$12,800,000 | $670/Net SF per SF
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TerraCRG has been retained to exclusively represent ownership in the sale of 186 & 194 Herkimer Street and 643 Madison Street in the Bedford-Stuyvesant section of Brooklyn.
The offering represents a unique opportunity to purchase three brand new construction buildings with a total of 29 residential units. The properties have a 15-year 421-a tax abatement in place without any affordable housing component. The Herkimer Street properties are located at the corner of Herkimer Street and New York Avenue, ideally situated approximately three blocks from the Nostrand Avenue A & C trains and the Gates Avenue J & Z trains. Both locations allow very easy access to Manhattan in approximately 20-25 minutes.
The properties are 25,561 gross SF and are comprised of 29 residential units. 17 of the units have private outdoor space/balconies (including 6 with huge private roof terraces) and all of the units have access to common outdoor space. The interiors of the units have condo finishes with hardwood flooring throughout and stainless steel appliances. The building operating expenses are minimal as each unit pays for their own heating and air conditioning and the Herkimer property has a heated exterior sidewalk system to eliminate the cost of winter snow removal. The buildings also have 15 years remaining on a 421-a tax abatement with annual taxes at only ~1,800 total.
The buildings have rents averaging approximately $45/SF. The gross annual rent is $841,200 and the approximate NOI is $747,500, which equates to a 5.36% cap rate based on the offering price.
The Herkimer property is ideally located one block away from Restoration Plaza which has been the center point of retail expansion in the area. Restoration Plaza provides extremely easy access to national retailers, including Super Foodtown, Applebee’s and Citibank. The Madison Street property is in close proximity to many of the new trendy bars and restaurants opening in the area, including L’Antagoniste French Restaurant and Casablanca Bar.