Alpha Realty recently closed the sale of a multifamily property at 308 East 109th Street in Manhattan for $9,250,000, as ownership moved to sell ahead of an expiring 421-a tax abatement and an approaching loan maturity.
Manhattan Multifamily Property Overview
- Address: 308 East 109th Street, Manhattan
- Sale Price: $9,250,000
- Price Per Square Foot: $373
- Capitalization Rate: 8.1%
- Building Size: 24,655 SF
- Brokers: Lev Mavashev & Yehuda Leser, Alpha Realty
- Market: Upper Manhattan
421-a Expiration and Loan Maturity Drove the Sale Decision
The ownership faced mounting pressure as the property’s loan maturity approached and the valuable 421-a tax benefits neared expiration. Recognizing the complexities associated with brokering such transactions, Manhattan multifamily assets with tax abatements, the owner retained Alpha Realty to lead the disposition process.
Competitive Bidding Delivered More Than 10 Offers
Despite these challenges, the property’s desirable location and long-term value-add potential attracted significant investor interest. Through a targeted buyer marketing campaign, Alpha Realty generated more than 10 competitive offers, creating a highly active bidding environment.
Buyer Eyes Condominium Conversion Upside
The eventual purchaser was drawn to the property’s future upside and the opportunity to explore a condominium conversion strategy over time. The building’s quality construction and underlying fundamentals positioned it as an attractive investment despite near-term operational considerations.
The transaction closed at a valuation below replacement cost, highlighting the opportunity recognized by the buyer and the continued demand for well-located Manhattan multifamily buildings with redevelopment and repositioning potential.
What This Sale Signals for Manhattan Multifamily Investors
The sale demonstrates that even in a challenging capital markets environment, investors remain eager to acquire high-quality multifamily properties that offer compelling long-term growth prospects. By leveraging its experience with Manhattan multifamily buildings and tax-abated assets, Alpha Realty’s Lev Mavashev and Yehuda Leser successfully brokered the deal, running a competitive sales process that delivered a successful outcome for ownership.