pricing that makes sense

So I see on the wire today a press release saying that a local operator has bought a 36-unit rental building on West 101st for $222k per unit. The price per sf works out to $345. This is a rent stabilized building, so presumably some of the units are below market. But I would be surprised if all the units were still stabilized. So even if this group turned around and sold the property tomorrow for... [more]

So I see on the wire today a press release saying that a local operator has bought a 36-unit rental building on West 101st for $222k per unit. The price per sf works out to $345. This is a rent stabilized building, so presumably some of the units are below market. But I would be surprised if all the units were still stabilized. So even if this group turned around and sold the property tomorrow for a 100% profit, the price would still be way below most of resi offerings we're seeing on the UWS. I'm guessing that GFI got a loan to buy this building, and that some lender looked at the terms of the transaction and thought they made enough sense to provide a loan, ie that the pricing made sense. Just sayin'...... GFI Realty Services Sells Manhattan Multifamily for $8 Million New York, New York (January 29, 2010) –GFI Realty Services Inc, announces the sale of 329 West 101st Street, in Manhattan for $8,000,000. The six-story elevator apartment building consists of 36 apartment units totaling 23,244 square feet. Shulem Paneth of GFI Realty Services represented the seller in this transaction and Yosef Katz, also of GFI Realty Services, represented the buyer. “The final price for the property was 11.8 times the rent roll, approximately $345 Per Square Foot,” said Shulem Paneth. “This property had not been sold in 22 years, however my client received an offer that he could not refuse. We completed the deal in just 60 days, completely off-market.” “The buyer believes in the long term strength of the Manhattan rental market,” said Yosef Katz. “He recognizes the potential upside in this building and is hoping to capitalize on it.” This prime upper west side property is rent stabilized and was built in 1921. It has been preserved to retain the original exterior architectural and is within walking distance of Riverside Park and the number one train, as well as a main retail corridor. About GFI Realty Services With over 26 years of experience, GFI Realty Services, Inc. combines an intimate knowledge of local markets with incomparable client service, to maximize the value of every commercial real estate transaction they are engaged in. GFI, a leading broker of New York City Commercial Real Estate, is committed to surpassing client’s needs and maintaining a thorough understanding of the latest market trends. [less]