Properties Sold

235 East 4th Street

East 23rd
Property 235 East 4th Street, located in the East Village Section of Manhattan.
Description Six story walkup with 30 apartments and 2 stores.
Date Purchased January 1999
Purchase Amount $3,700,000, including renovation costs.
Condition at time of Purchase Property was 90% leased and in need of deferred maintenance.
Repositioning Vacated, renovated and re-rented over half of the units at significantly higher rents. Increased existing rent roll from $460,000 to $1,020,000 (an increase of 122%) at the time of sale. Converted original 4 stores into 2 upscale restaurants.
Date Sold November 2007.
Sale Price $14,450,000. (no broker involved in the sale)
Annualized Rate of Return to Investors In excess of 35% over a holding period of approximately 9 years.

Many factors contributed to the substantial increase in the rent roll. An investigation of the existing tenancy revealed that many tenants were residing in the building illegally. After closing, aggressive steps were taken to vacate, renovate, and/or refurbish these units and re-rent them at much higher rents. To generate higher rents, virtually all-vacant units were converted to two-bedroom apartments. Allowable rent increases attributable to capital improvements made, but not applied for, by the prior owner, were subsequently applied for and granted. Two of the store leases were bought out, resulting in the conversion of the four original stores into two larger stores that were re-leased to 2 upscale restaurants at substantially higher rents. Space on the roof of the building, not previously considered rentable, was leased to house certain communications equipment, at a rent of $24,000 per year.

Contact Info

Rolling Cash Equity Group
1430 Broadway - 14th floor
New York, N.Y. 10018
Tel: 646-519-8490
Fax: 646-519-8494
info@rollingcashequity.com