197 East 3rd Street

The subject property is a 5-story mixed-use building located on the north side of East 3rd Street between Avenues A & B featuring 16 residential apartments above and one commercial unit on the ground floor. The building currently benefits from a J-51 Tax Abatement, which expires in 2024/2025. As a result, all of the residential apartments are rent stabilized per the abatement. While rents for 6 apartments (1,2,3,4,12,14) are limited by rent stabilization, the remaining 7 occupied apartments (5,6,7,9,13,15,16) currently achieve rents that are closer to market, but are significantly lower than the maximum legal rent for these units. There are 3 vacant units. The 6 apartments are currently renting on average for $42.39/NSF or less than $1,250/month compared to approximately $59.45/NSF for the 7 units. Furthermore, 4 of the 6 units contain preferential rents which upon expiration would add almost $15,000 in additional income with no additional renovation work. Of the 16 total residential apartments, 13 are occupied and 3 are vacant, while 13 are configured as studios and 3 as one bedroom units. The ground-floor commercial unit is occupied by No Malice Palace, a very popular bar and night club with exclusive access to the rear yard whose lease expires in December 2019.