CLOSED: 225-227 West 20th Street - $13,750,000
Congratulations to my clients on the closing of 225-227 West 20th Street in Chelsea for $13.75 million!
Rockson Advisory acted as the sole advisor to both the buyers and sellers on this prime Chelsea property comprised of 33-units.
The property has been family owned and managed for generations while being kept in immaculate condition. The pride of ownership is truly apparent. However, the sellers are looking to transition their holdings into more passive investments via 1031 exchange.
The property comprises of nearly all fair market studios and spacious two bedrooms. Offered with an in-place 3% cap rate due to an overhang of below market, pandemic era lease rates to maintain strong occupancy. However, at current market rates - the property can be stabilized at a ~6.5% cap rate as old leases burn off.
The new buyers, TARGO Capital Partners, have a comprehensive plan to reinvigorate the buildings and maximize value.