Asking Price Contact for pricing
Area Size
NOI Net Operating Income
NIY N/A

Documents

Enter the "Deal room" for exclusive documents related to this property.

The Deal Room features confidential documents related to this property. To access the Deal Room, you will need to be logged in. If you don't have an account, please create one. More questions? Visit our FAQ.
I accept the confidentiality agreement
Create an account on the Investor Center to save your search and investment preferences, save and share opportunities, access exclusive documents, and more. More questions? Visit our FAQ. Approval for Deal Room access requires review by our Broker Team. You will be notified by email once your access is granted. More questions? Visit our FAQ. You'll need to sign a Confidentiality Agreement (CA) to access exclusive documents in the Deal Room. Signing the CA means you agree not to divulge or release sensitive information related to this property. More questions? Visit our FAQ.
I accept the confidentiality agreement I accept the confidentiality agreement
Create an account on the Investor Center to save your search and investment preferences, save and share opportunities, access exclusive documents, and more. More questions? Visit our FAQ. You'll need to sign a Confidentiality Agreement (CA) to access exclusive documents in the Deal Room. Signing the CA means you agree not to divulge or release sensitive information related to this property. More questions? Visit our FAQ.

Attributes

Year Built 2014
Building Area Gross
Land Area Gross ()
Rentable Area
Number of units 85

Asset Description

Jones Lang LaSalle (“JLL) has been exclusively retained to facilitate the sale of The Nathaniel, located at 138 E 12th Street, New York, NY (the “Property”), a 9-story, 85-unit mixed-use property in East Village with an 18,000 SF grocery store leased to Westside Market. The Property represents a rare opportunity to purchase an institutional asset with upside in the short term. The Property’s unparalleled location near Union Square provides easy commutes throughout the city via 8 MTA train lines and offers the confluence of trendy East Village with classy Gramercy Park. The next owner can drive rents without renovations as there is an 18% spread between in-place preferential rents and maximum legal rents.

Investment Highlights

Needle in a Haystack

The Nathaniel is the “needle in a haystack” of tenement buildings in East Village as it offers Class A units and amenities yet benefits from the confluence of East Village and Gramercy Park.


Ability to Push Rents

The top comp in Union Square (2 blocks away) is currently achieving $7,000/month and $143/SF, which represents a 31% rent premium to The Nathaniel. Also, there is an 18% spread between in-place preferential rents and maximum legal rents.


Repositioning Upside

The existing 9th floor, approximately 8,000 SF, is currently a “shell” and can be easily converted to standard units or dorm style units. Also, there is an opportunity to develop 20,000 ZSF as penthouse floors as well as relocate the existing bike room to add approximately 500 SF of ground floor retail space.


Strong Demographics

The average household income of in-place tenants is $389,000 suggesting that rents can be pushed at least 10%.


Unregulated Units in 2025

100% of units are market rate today; however, when the 421a abatement expires in June 2025, there will be no limit on renewal rent growth allowing the buyer to blend to a higher rent growth.


Outsized Cash on Cash

Due to the 421-A abatement in years 1-3 coupled with the higher going in yield attributable to the ground lease, the property can generate high cash on cash returns if capital expenditures are limited.


Student Demand

In addition to organic demand from working adults, there are over 75,000 students nearby across six higher education institutions all of which lack purpose-built student housing, thus providing the next owner the opportunity to capture this demand through a repositioning or master lease.

Last Updated Date: 11 Aug 2022

There was an error submitting your request. Please try again, or submit you inquiry here.

 

PRIVACY NOTICE

Jones Lang LaSalle (JLL), together with its subsidiaries and affiliates, is a leading global provider of real estate and investment management services. We take our responsibility to protect the personal information provided to us seriously.

Generally the personal information we collect from you are for the purposes of dealing with your enquiry.

We endeavor to keep your personal information secure with appropriate level of security and keep for as long as we need it for legitimate business or legal reasons. We will then delete it safely and securely. For more information about how JLL processes your personal data, please view our privacy statement.

Last Updated Date: 11 Aug 2022

Do you have any questions?  Visit our FAQ page

JLL  financing

JLL can help you finance and manage your portfolio.
Email us today to see how we can help achieve your ambitions.