Madison Realty Capital (MRC) has purchased two adjacent multifamily buildings, located at 216-218 West 22nd Street between 7th and 8th Avenues within the Chelsea neighbourhood of Manhattan.
The off-market transaction was purchased for USD19.25 million and represents the first sale of this property in over 30 years.
The 27,750 square-foot property consists of two adjacent five-story buildings, each 30 feet wide, with 30 residential units. The unit mix is comprised of 19 one-bedroom apartments and 11 two-bedroom apartments, as well as impending vacant basement/garden level space currently built out for commercial use.
MRC intends to pursue a hands-on repositioning programme for the entire property that includes renovating and modernising the apartments into high-end luxury units and capturing additional space by converting the first floor and garden level areas into duplex apartments.
"This was an opportunity for Madison to secure a high-quality multifamily asset with plenty of upside in one of the most sought after Manhattan residential neighbourhoods," says Josh Zegen, co-founder and managing principal of MRC. "This acquisition fits solidly with our overall investment strategy and we are confident in our ability to maximise its value through our comprehensive capital improvement, renovation and marketing plans."
The seller was represented by Christopher Okada and Hiro Iwata of Okada and Company. The buyer was represented by Anand Melwani, principal of ARM Real Estate Group.