Seller Applies Proceeds to 1031 Exchange Acquisitions in Austin, TX and Wauchula, FL
Elli Klapper, Charles Berger and Jay Gelbtuchof the CBRE Tri-State Investment Properties Team arranged the $7.72 million sale of 1654 Monroe Avenue in the Bronx, NY. The team arranged the multi-faceted transaction on behalf of the seller, a private investment company.
The 50-unit, fully-occupied apartment complex sold for close to record breaking pricing at over 16 timesGross Rent Multiplier at an approximate 4% cap rate to a local New York City buyer. Located just off of Claremont Park, 1654 Monroe Avenue presented an exceptional opportunity to acquire a six-story apartment building that has undergone major renovations and rehabilitation as part of the New York City 8A program. The property also boasts existing tax abatements as part of the NYC J-51 exemption and abatement program for the renovations already completed. The residential apartment building is ideally situated just five blocks from Grand Concourse, the Bronx’s main bustling thoroughfare with shopping and dining, and Bronx Lebanon Hospital. 1654 Monroe Avenue also offers commuters immediate and excellent access to the whole New York Metropolitan area via the B & D subway lines, bus service and the Cross-Bronx Expressway.
The proceeds from the sale were applied to the acquisition of a retail property at 7410 McNeil Drive in Austin, TX housing a Walgreens Pharmacy, as well as 201 South 6th Avenue in Wauchula, FL, which is occupied by Family Dollar. 7410 McNeil Drive was acquired for $6.5 million, while 201 South 6th Avenue was purchased for $1.75 million. Both properties are triple-net leased.
“Our client was looking specifically for stable 1031 Exchange properties in income tax free states, which is a major trend for property owners looking towards retirement – the selling of management intensive assets and utilizing 1031 Exchange to acquire stable net leased properties,” noted Mr. Klapper, who traveled extensively with CBRE’s client to view a number of potential acquisition targets throughout Florida and Texas. “Over the past year, we have been able to complete a number of these transactions and we foresee this trend to continue.”
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