Sometimes, growth doesn’t mean profit—especially in NYC real estate. The sale of 421 W 21st St, a 35-unit multifamily building in Chelsea, shows how rent regulation and rising rates are reshaping values even as rental income rises.
Brokered by our own Lev Mavashev, the deal closed in early 2025 for $18.5 million, all cash, despite a significantly improved rent roll compared to its 2014 sale. It’s a snapshot of how NYC multifamily sales are evolving in a tougher, more complex investment landscape.
Chelsea Manhattan Multifamily Sale: Project Overview
Chelsea Manhattan Multifamily Sale: Project Overview- Asset Type: Elevator Multifamily (6-story)
- Location: 421 W 21st St, Chelsea, Manhattan, NYC
- Original Condition: Mostly rent-regulated units in 2014
- Acquisition & Rehab: 60% of units renovated with modern interiors
- Sale Type: Off-market transaction
- Sale Price: $18,500,000
- Closing Timeline: Closed in early 2025
- Sale/Settlement Date: Q1 2025
- Units: 35 residential apartments
- Size: 26,800 square feet
- Price per SF: ~$690
- Cap Rate: 5.85%
- Buyer: All-cash private investor
- Seller: Long-term NYC multifamily owner
- Broker: Lev Mavashev, Alpha Realty
Why This Chelsea NYC Apartment Building Sold Below 2014 Pricing
Despite having doubled its rent roll since its last sale in 2014, 421 W 21st St sold for $4 million less. That earlier deal traded at $22.5 million, when rent regulations were looser and cap rates were compressed by low interest rates. By 2025, however, the picture looked quite different.
The 2019 rent law changes sharply limited upside for rent-stabilized units. Meanwhile, interest rates spiked, pushing cap rates higher and pricing lower. Even buildings with strong cash flow and partial renovations—like this one—faced stiffer valuation pressure.
As Lev Mavashev, founder of Alpha Realty, put it:
“Despite higher income and renovations, this building sold below its 2014 price due to today’s market realities. This was about helping sellers out of a high-pressure situation.”
Navigating NYC’s Rent-Stabilized Market
Rent-stabilized assets come with built-in complexity. Investors need to assess tenant profiles, regulatory constraints, and turnover potential. In this case, 60% of the units had already been upgraded, featuring in-unit washer/dryers, stainless steel appliances, and a virtual doorman system. But the remaining stabilized units and regulatory uncertainty narrowed the buyer pool considerably.
Many investors were hesitant to underwrite long-term growth under the current rent laws. Only a buyer willing to move quickly, and buy all-cash, could make the numbers work in a way that met the seller’s urgency.
Alpha Realty’s Strategy: Buyer Vetting & Deal Execution
Alpha Realty and Lev Mavashev led a highly targeted marketing effort, focusing on experienced multifamily buyers who understood NYC’s regulatory dynamics. Lev strategically priced the elevator building asset, prequalified interested parties, and streamlined negotiations to secure a clean, all-cash close.
His approach helped the seller avoid a drawn-out listing period or lowball offers from buyers unsure how to value stabilized product in the current market.
Chelsea Manhattan Multifamily Location Benefits
421 W 21st St sits in the heart of Chelsea, a prime residential neighborhood on Manhattan’s West Side. Known for its mix of historic walk-ups and luxury high-rises, Chelsea offers strong rental demand in both free-market and stabilized product. The building is just steps from the High Line, Hudson Yards, and Chelsea Market, with easy access to Midtown, Meatpacking District, and multiple subway lines via the 23rd Street Station.
Positioned between 9th and 10th Avenues, the property benefits from a central West Side location, drawing tenants who want close proximity to Manhattan’s art galleries, tech hubs, and riverfront parks. Even in a cooling investment environment, Chelsea’s built-in desirability continues to support long-term leasing strength.
Real Deals Still Happen in a Tough NYC Market
This deal proves that real transactions are still getting done in NYC’s toughest submarkets. 421 W 21st St is a case study in navigating the new normal of NYC multifamily sales. It wasn’t about chasing the highest price—it was about finding the right buyer and closing cleanly in a tough environment. Alpha Realty helped make that happen.
Thinking about buying or selling a multifamily property in NYC?
Contact Alpha Realty today — an associate broker can follow up to discuss your goals.