JLL Capital Markets has announced the $41.5 million sale of 959-961 Second Ave. and 246 East 46th St., a 105-unit, two-building portfolio in the East Midtown neighborhood of New York City.
JLL arranged the sale on behalf of the seller, nonprofit JT Tai & Company Foundation. The buyer was Oak B. Management, a local private investor who plans to renovate and reposition the existing buildings with a focus on retail lease up.
The property at 959-961 Second Ave. is a four-story residential asset with 10 apartments and two commercial units situated at the corner of Second Avenue and East 51st Street. The six-story elevator building at 246 East 46th St. comprises 81 apartments with a mix of 56 studios, five one-bedrooms, 19 two-bedrooms and a single duplex residence, as well as 12 commercial spaces.
One of the highest-profile business districts in the world, East Midtown is in the midst of a rezoning focused on 78 blocks between the east side of Third Avenue and the west side of Madison Avenue, from East 39th Street to East 57th Street. The rezoning should cement the neighborhood’s status as a premiere commercial business district with incentives for sustainable Class A office development, transit upgrades, enhanced pedestrian access, open space and active retail corridors.
The JLL Capital Markets team that completed the transaction comprised Chairman Bob Knakal, Managing Directors Clint Olsen and Jonathan Hageman, Executive Vice President Eddie Shuai and Analysts Stephen Godnick and Jacob Russell.
“With nearly 7 million square feet of new commercial office space expected to come online over the next 20 years, East Midtown is primed for a remarkable revival and these assets sit at the heart of it all,” said Olsen. “The buyer intends to renovate and reposition the properties with a focus on retail lease up, positioning the investor to capitalize on the record-breaking apartment rental market and the assets’ proximity to prominent attractions as tourism stages its comeback.”
“This was an incredible investment opportunity that provides the buyer with a runway to future upside through 32,336 square feet of development potential at 959-961 Second Ave. while doubling down on a location that affords tenants of both properties the convenience of walking to working, tremendous restaurant and retail offerings and multiple transportation options,” Knakal added.
The two properties were part of a four-building portfolio offered for sale by the JT Tai & Company Foundation. A remaining property at 17 East 70th St. is still available for sale.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.