Asking Price Contact for pricing
Area Size
NOI Net Operating Income N/A
Cap Rate N/A

Documents

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Key facts

Year Built 2016
Building Area Net
Rentable Area
Number of units 319

Property description

Jones Lang LaSalle (“JLL”) has been exclusively retained to facilitate the sale of 160 Madison, located at the corner of 33rd Street and Madison Avenue in New York, NY (the “Property”), a 42-story, 319-unit mixed-use luxury tower including 28,520 SF of retail which is 100% occupied. The Property represents a rare opportunity to purchase a best-in-class trophy asset with a 421a tax abatement and highly accretive assumable NY State HFA bonds. The Property’s unparalleled location provides easy commutes throughout the city via 12 MTA train lines or by walking to millions of square feet of nearby office towers. The next owner can mark rents to market by more than 10% in year one given the recent leasing trends at the Property and nearby Class A properties, and the 17% spread between in-place preferential rents ($88/SF) and maximum legal rents ($102/SF).

Investment highlights

Best-In-Class Luxury Product 

  • In addition to the fantastic views from each unit, the finishes include Silestone countertops, Calacatta marble in the penthouse units, Daltile porcelain, glass enclosed showers, and white oak floors 
  • The “Club Madison” membership includes 20,000 SF of amenities including panoramic views of the city from the rooftop deck and lounge, a fitness center overlooking a private park, and several lavish resident lounges


Scarce Investment Opportunity 

  • There are no other large scaled 421-A properties for sale in Manhattan with rent upside as most 421-A opportunities are in the outer boroughs


Accretive Bonds with Swaps 

  • The existing NY State HFA bonds are accretive with a swap in-place until 2028 and a bond maturity in 2046. Additionally the property can support additional mezzanine financing


Upside in Rent 

  • There is a 17% average spread between in-place preferential rents ($88/SF) and maximum legal rents ($102/SF)
  • The last 20 leases have averaged $93/SF compared to in-place averaging $88/SF, representing 5.7% growth 
  • 51% of market rate units have an 8% delta to December 2019 rents allowing for a significant mark to market in year one
  • Comparable Class A properties in surrounding submarkets achieve $109/SF, a 24% potential upside to current average rents


Strongest Demographics in the Country 

  • The average household income of in-place tenants is more than $450,000 indicating that rents can be increased significantly without pressure to existing tenants
  • Most tenants work at prestigious financial service firms or at the large tech firms in Midtown South or near Penn Station Strong Cash on Cash
  • With the current 421a tax abatement expiring in 2036, the low interest rate bonds, and very limited capital expenditures given the 2016 vintage, the average cash on cash will outperform the market 


Walking Oriented Location

  • 160 Madison is located within walking distance of robust job growth in Midtown South, Hudson Yards, and the office nodes surrounding Grand Central Terminal and Penn Station


Retail Mark to Market

  • The corner retail store on Madison Avenue, currently leased to Bo Concept, is paying below market rent at $125/SF due to a COVID amendment providing the opportunity to mark the lease up to $330/SF in 2026.
Last Updated Date: 11 Aug 2022

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Last Updated Date: 11 Aug 2022

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