179 East 3rd Street

Cushman & Wakefield has been exclusively retained to arrange for the sale of 179 East 3rd Street, a 6 story, mixed-use walkup building located in the dynamic East Village. Situated on the north side of East 3rd Street between Avenue A and Avenue B, the building features approximately 50’ of valuable retail frontage that provides tremendous visibility and exposure in the bustling neighborhood. The subject offering consists of approximately 19,600 gross square feet and contains a mix of 32 residential apartments and 3 retail storefronts. 179 East 3rd Street currently generates an effective gross revenue of over $1.1 million with a net operating income of approximately $767,851. Of the 32 residential units, 19 are fair market, 11 are rent stabilized and 2 are rent controlled. As 40% of the units are stabilized and achieve an average of only $985 per month, or just 30% of market, prospective ownership can unlock significant value over time through deregulation. Further upside can be achieved immediately in the fair market units through the creation of coveted amenities for residents including, but not limited to, an expansive roof deck that already benefits from impressive views, the installation of a laundry facility/service, a security system, automated doorman and an updated lobby. There is also substantial value in the property’s retail component that features approximately 1,360 square feet of ground floor space. The building currently hosts three separate retail units, two of which are occupied by renowned Crandall Guitars and Studio 26 Gallery with leases that expire in 2018 (with a 5 year renewal option) and 2017 (with a 2 year renewal option), respectively. The last unit is owner occupied and will be delivered vacant upon sale. As the landscape of the East Village has transformed into one of the most desirable residential and commercial locations in the city, future ownership has the ability to capitalize on the favorable growth of the neighborhood in the near term. Located in the heart of the East Village, 179 East 3rd Street benefits from a wide array of the city’s best shopping, dining and nightlife options. The neighborhood has experienced rapid transformation in recent years that has attracted a younger population drawn to the area’s new developments. The most exciting new project coming to the area is Essex Crossing, a 1.9 million square foot mixed-use project located just 3 streets south of the subject property. The project promises state-of-the-art office space, 1,000 residential units and unparalleled amenities including shops, restaurants, a movie theater, park space and cultural attractions. Part of the allure of the neighborhood is its convenient access throughout Manhattan and Brooklyn via countless subway lines, buses and immediate access to the Williamsburg Bridge. Not only does the connectivity benefit residents working throughout New York City, but it attracts global visitors on a daily basis. The meticulously maintained property offers an incredible investment opportunity in one of Manhattan’s most exciting enclaves that is currently experiencing unprecedented residential and commercial demand.