Current Properties

418 East 71st Street – Medical Building

East 23rd
Property 418 East 71st Street, located between First and York Avenues on the Upper East Side of Manhattan.
Description 7 story, elevatored, OSHA approved medical building, near New York-Cornell Hospital, Memorial Sloan Kettering Hospital and Bellevue Research Center.
Date Purchased December 2001
Purchase Amount $5,250,000
Condition at time of Purchase Property was 100% leased and well maintained.
Repositioning Acquisition was structured as a net lease with an option to purchase the property at the end of a 10-year term. The existing rents ($460,000) were substantially below market. In January 2009, the lobby tenant signed a new lease for over $75 per sq. ft. In July 2010, an existing tenant signed a new lease at an inital base rent of $72 per square foot. Additionally, In September 2010, the rent for the building's major tenant increases to F.M.V. estimated at $70 – $80 per square ft. It is projected by the end of 2010 the gross rental income will be in excess of $850,000.
Date Sold N/A – Still Owned
Estimated F.M.V $12 – $13 Million
Cash Distributions Investors have, since acquisition, on a monthly basis received an 8% annual cash-on-cash return on their remaining capital investment in addition to a 2% annual accrual.
Other Financial Benefits Any net mortgage refinance proceeds, as well as their share of the property’s substantial appreciation when the property is sold.

Originally, a three story, walk-up commercial building, the property was gut renovated by the Owner in 1995 and four new floors were added to the existing building. Other improvements included installing a new elevator, new fire escapes, new security systems and new building-wide systems.

Contact Info

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