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Avison Young lists Manhattan Historic Front Street Portfolio for $87 millionJanuary 12, 2023
New York, NY – Avison Young has been exclusively retained to sell the Historic Front Street portfolio for $87 million. The portfolio spans 143,177-square-feet (sf) and consists of seven mixed-use elevator properties on Front Street between Peck Slip and Beekman Street in the South Street Seaport neighborhood of Manhattan.
The seller, a joint venture by The Durst Organization and Zuberry Associates, is represented by James Nelson, Principal and Head of Tri-State Investment Sales and Alexandra Marolda, Associate Director, with support from Brandon Polakoff, Principal, Executive Director of Tri-State Investment Sales; David Shalom, Director; and Ryan McGuirl, Associate Director, all based in Avison Young’s New York City office. Scott Singer, Principal and Co-Lead of Avison Young Tri-State Debt & Equity Finance is handling buyer financing needs.
“Properties like this in the South Street Seaport’s historic neighborhood are rarely available for sale and are incredibly unique. The Historic Front Street portfolio is a perfect opportunity to benefit from the strong in-place cash-flow and future rental growth through light cosmetic upgrades as investment continues to flow into the area,” said Marolda. “The owners have completed a comprehensive capital improvement plan following Hurricane Sandy, including components designed to weather future storms,” added Nelson.
The portfolio’s seven buildings include 15 retail units and 95 luxury residential rental units, of which five are studios, 46 are one-bedrooms, 41 are two-bedrooms, and three are three-bedrooms. Residential units include condominium-level finishes and amenities. Three of the seven properties, 213-217 Front Street, 214 Front Street, and 236 Front Street/24 Peck Slip, benefit from 421-a tax abatements, with an average of 4 years remaining, offering near-term reduced taxes and long-term free-market rental upside. Additionally, three of the properties are tax class 2B, which caps tax increases to 8% annually or 30% over any five-year period.
“We are very proud of this unique portfolio in downtown Manhattan, which has won several awards,” said Jonathan (Jody) Durst, president of The Durst Organization.
Avison Young creates real economic, social and environmental value as a global real estate advisor, powered by people. As a private company, our clients collaborate with an empowered partner who is invested in their success. Our integrated talent realizes the full potential of real estate by using global intelligence platforms that provide clients with insights and advantage. Together, we can create healthy, productive workplaces for employees, cities that are centers for prosperity for their citizens, and built spaces and places that create a net benefit to the economy, the environment and the community.
Avison Young is a 2022 winner of the Canada's Best Managed Companies Platinum Club designation, having retained its Best Managed designation for 11 consecutive years.
About The Durst Organization
The Durst Organization, founded in 1915 by Joseph and Rose Durst, is the owner, manager, and builder of 13 million square feet of premiere Manhattan office towers and over 3 million square feet of residential rental properties with 3,400 rental apartments built, and several thousand units in the pipeline. The Durst Organization is recognized as a world leader in the development of high-performance and environmentally advanced commercial and residential buildings where people live, work, and thrive. www.durst.org
For more information:
- Download a property photo here.
- Nathan Reyna, Regional Media Relations & Content Specialist, Northeast & Midwest: +1.972.533.1396
- Alexandra Marolda, Associate Director, New York: +1.212.277.5558
- James Nelson, Principal and Head of Tri-State Investment Sales, New York: +1.212.729.6585