What's Happening?
Alpha Realty has secured the exclusive listing for a five-story, 20-unit multifamily building located at 518 East 83rd Street in the Yorkville section of Manhattan's Upper East Side. The property, built in 1910, spans approximately 8,120 square feet and
is predominantly a free-market asset, generating over $720,000 in effective gross income. Current rents are estimated to be 15 to 20 percent below market levels, offering significant value-add potential through lease turnover and targeted unit upgrades. The building is being offered at a price of $8,500,000, representing a 6.25 percent cap rate and 11.8x GRM on current income. The property is strategically located near the Second Avenue Subway and major institutional employers, ensuring consistent rental demand and long-term stability.
Why It's Important?
The listing of 518 East 83rd Street presents a rare investment opportunity in one of Manhattan's most stable and supply-constrained rental markets. With rents below market levels, investors have the potential to increase revenue through strategic upgrades and lease adjustments. The property's proximity to major employers and public transportation enhances its appeal, promising steady rental demand. This opportunity is significant for investors seeking to capitalize on the long-term value potential in a high-demand area of New York City. The offering also highlights the ongoing interest and activity in Manhattan's real estate market, particularly in the multifamily sector, which remains a critical component of the city's housing landscape.
What's Next?
Investors interested in the property will likely conduct due diligence to assess the potential for rental increases and the feasibility of unit upgrades. Alpha Realty's investment sales team, led by Lev Mavashev, is handling the marketing of the property, and potential buyers will need to evaluate the financial metrics, including the cap rate and GRM, to determine the investment's attractiveness. The outcome of this listing could influence future transactions in the area, as it sets a benchmark for similar properties in terms of pricing and investment potential.
