171 East 74th St. BUILDING

INVESTMENT DESCRIPTION

Marcus & Millichap is pleased to offer the following opportunity on the Upper East Side. Located on East 74th Street between Lexington and 3rd Avenues, the offering consists of a five-story mixed-use building with second floor mezzanine space and a usable cellar. The property has an approximate gross square footage of 11,084 and is situated on a 25 foot by 102 foot lot (Block: 1409 Lot: 31). The subject property is built 25 feet by 76 feet
and is zoned R8B.

THE OPPORTUNITY

The subject property is a five-story mixed use elevator building containing a total of nine residential apartment units and eleven commercial units. All nine residential units are free market; three are one-bedroom units and the remaining six are studios. The cellar, first, and mezzanine floors contain a mix of commercial and office space. The sixth floor contains an occupied unit as well.

This is a rare opportunity to acquire a 25-foot wide elevator mixed-use property on East 74th Street between Lexington and Third Avenues. The property is unique in that it can be viewed as both a cash flow investment or user opportunity. From a cash flow perspective, the property features tremendous upside in both the residential and commercial portions. Both the studios and one bedroom units are approximately 25% below market and can be upgraded through a simple renovation. The commercial spaces are occupied by a mix of commercial and office tenants at below market rates. Investors could look to potentially convert the commercial space to residential. The property also falls into the attractive tax class 2B, which caps annual tax increases at 8%.

From a user perspective,the building contains mostly short term leases, providing a user the ability to get the majority of the building vacant. The property also features a tremendous 25 feet of frontage, as well as an elevator. Located on a high end block with mostly single family properties, the property has the potential to be used as a single family conversion, live plus income investment, nonprofit facility or foreign government consulate. The building is located three blocks from Central Park and is steps away from the 6 train.