Condotel, Boutique Hotel for Sale in 23 East 39th Street, Manhattan, New York, USA

Jewel of Manhattan, Near United Nation - a Dream Investment

DESCRIPTION

CAN BE DELIVERED VACANT - SUPERIOR INVESTMENT OPPORTUNITY FOR HOTEL DEVELOPERS OR EMBASSY TYPE ORGANIZATION AND ALL INVESTORS .

Upon complete feasibility study and architechtral review, as well as retaining the finest architectural firms in New York City, it is now confirmed that this building which is located in the most desirable area of new York city, is well suited to be converted to a 21 story Hotel/condotel/faractional ownership unseen anywhere in the New York City . It will offer 21 story building with 3 stories of commercial use spaces. The property is currently provides a triple net lease tenant in an office building of the most magnificent property.

Upon many request, we have made internal arrangement with the tenant to vacate the building in three months so we can deliver the proeprty vacant to potential investor

This would be the most economical and one of a kind boutique hotel that will create maximmum cash flow and income potentials for the developing entity. Substantial amount of funds and time has been invested by the principals to assure that the building meets all the local zoning requirements.

The information and feasibility studies and letter of opinions by the architects will be available to qualified and interested parties. Following is the general information aout the building (as is) that is extremely valuable investement as is, if one chooses not to convert it to a HOTEL.

A 25' wide, 6 story, approx. 14,700 sq. ft. elevator office building is located in Murray Hill on the north side of East 39th Street between Madison and Park Avenues. The property was completely renovated in 1999 with modern office updates, structural enhancements, refurbishment of various moldings and features. The building has a roof deck, back-up energy, ample storage space, basement storage, 3 residential floors & 3 retail/commercial floors and rare AIR RIGHTS. Zoning C5-3

It offers 500sf rear terrace in the bldg, all new mechanicals in the sub-basement. Perfect for not-for-profits, fashion company HQ, missions, local users, hedge funds.

Original architectural details over 140 years old: parlor level floor has original wood moldings, marble fire place, detailed ornamentally carved columns. Second and Third floor have 14' ceilings. It is an elevator building with over 13 bathrooms throughout. Each floor has its own kitchen.


HISTORY:
This row house was built in 1859-1860 for Samuel Frink, a merchant and real estate operator. The name of the designer is not known. After several intermediate owners -one of whom added a fifth, mansard story in 1875 -- Delancey Nicoll, District Attorney for New York County in the early 1890's, bought the house in 1902. The later ironwork in the doorway and the elaborate plaster work and French-style fireplaces suggest turn-of-the-century design. The Nicolls retained James Brown Lord in 1902 to make a rear addition and this work may be from that architect's hand. Nicoll seems to have left full-time public service after 1894. His family owned the house until 1931.

Further Details:
Original architectural details over 140 years old: parlor level floor has original wood moldings, marble fire place, detailed ornamentally carved columns. Second and Third floor have 14' ceilings. Small elevator. Over 13 bathrooms throughout; each floor has its own kitchen. Excellent Grand Central/Bryant Park/United Nations location. Immediate access to all subways, bus lines.

The Zoning is C5-2.5 FAR 12. It consists of 6 story building. The area built is 25 x 98. The basement is used for utility room, and storage. The Cellar is scaled “ English Cellar”. It is beautifully designed and decorated with railing from the street and 4 beautifully wide and short steps leads to a wide lower open space that leads to the cellar. This is an ideal location for an upper Bar, club, or a restaurant.

First & second floors are zoned as retail/commercial
Third floor through the fifth floor are all zoned residential. The last floor is penthouse and has scenic terrace. The 4th floor has been divided to 2 apartments and therefore there are total of 4 residential units according to the zoning approval. Current tenant is a very well established business entity with more than 150 employees providing staffing services for financial industry.

The average cost of retail space in the immediate are is in excess of $125.00/Sqft per year and it is about $50.00/sqft for residential units.

This property is most desired since additional 11 units (substantially high income producing) can be built above the existing structure, or to demolish the existing structure and build a luxury “Condo Hotel” of 37,500 Sqft (per FAR & the Zoning applicable ).

LEASING INFORMATION
The net rental income is $600,000 and the tenant pays for any and all expenses of about $108,000 (taxes $86,000 + Insurance $17,000 + utilities and water/sewage). The tenant also pays for any repairs or maintenance fees as it may occur.

In the event of the tenant departure, due to the height desirable location, the retail spaces can easily bring $120.00 to $130.00 per Sqft/year ~~~ about 7000 Sqft of retail space =>$850,000 to $900,000 & the residential property will generate minimum of $40 to $50.00Sqft/year ~~~~~ average of 1650 sqft per floor X 3 floors = 4,950 Sqft of residential rentals => $225,000 or total of very conservative income of $1,100,000 of income per year as of today’s prices if the existing tenants moves out tomorrow.

The net income for debt service would be minimum of $1,100,000 less $108,000, less management fees etc of additional $50,000 = $950,000 to cover debt service

UNPARALLEL FINANCING IN PLACE/ ASSIGNABLE
The additional beauty of this investment is the existing mortgage that is assignable. Currently the property is secured with a first lien of $7,250,000 at interest only for 3 years at 5.9% and term of 29 years . The purchaser can take over the existing mortgage with payment of only 1% assignment fee to the lender. This alone represents savings of at least $300, 0000 in closing cost to the new owner already incurred by the seller.

AVAILABLE For sale, or AAA Net Lease. The asking price is $13,000,000 (net), By Owner.

Due to its locality within the United Nations vicinity, structure and layout of the building, this may be the most ideal property for any governmental office to either occupy the whole building, or partially rent the commercial or residential spaces. The tenant is flexible to accommodate with the lease terms in the event new owner needs to occupy the building.

Interested and qualified parties are welcome to contact the owner, Mr. Jim Benjamin at 516-779-1967