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153 E 26th StNew York, NY 10010
153 East 26th Street
Asset ClassMixed Use, Multifamily
Overview
The New York Multifamily team of Marcus and Millichap is pleased to exclusively offer for sale 153 East 26th Street, which is ideally located in the Kips Bay neighborhood. Located on the North side of 26th Street between Third Avenue and Lexington Avenue, this 15unit mixed-use property is comprised of approximately 15,800 square feet with 20’ of frontage. This property sits on a 20’ x 98.75’ lot (Block: 882 Lot: 39) and is built 20’ x 98.75’. The property is zoned R8B.
Investment Highlights
- Opportunity: 15-Unit Mixed-Use, 8-Story, Elevator Property Spanning 15,800 Square Feet. The Unit Mix Includes 1 Retail Unit, 10 Three-Bedroom Units, 3 Two-Bedroom Units, and 1 One-Bedroom Unit. Of the Residential Units, 3 are Rent Regulated & 11 are Free Market.
- Strong In-Place Retail: The retail is occupied by Little Basil Thai Restaurant, a well-known neighborhood Thai eatery. The tenant has occupied the space for over a decade and has become a staple for consistent, high-quality Thai food. Their lease was just renewed for an additional 10 years at roughly $13,000 per month with 3% annual increases, generating long-term stability and cashflow for any perspective purchaser. Additionally, they pay 100% of their own water consumption and are responsible for 40% of the tax-increases over the 2024/2025 base year, creating a strong hedge against rising taxes.
- Institutionally Maintained: The free-market units have been newly renovated with high-end finishes. These units contain in-unit washers and dryers, dishwashers, stainless steel appliances, and individual HVAC Units. Ownership modernized the elevator (mechanical systems, controls, and safety systems), replaced the water tower, and did significant façade work over the past 3 years, including reinforcing the steel beams, replacing the steel lintels, and upgrading the parapet. This elevator building also features a virtual doorman via the ButterflyMX Comelit system and a newly installed ADR security system. The hallways and stairs were also updated with modern finishes.
- Untapped Potential & Future Upside: Due to the expired J-51 tax abatement, the three remaining regulated units in the building will become free market once they become vacant. The breakdown of these units includes 1 one-bedroom unit, 1 two-bedroom unit, and 1 three-bedroom unit. They have a combined average rent of $1,452, while the free market three-bedroom units have been rented for as high as $7,800. Given the Broadway Alley to the East of the property, it is worth noting that the two-bedroom B-Line units can also be converted to three-bedroom apartments as the property supports the necessary light requirements for an additional bedroom.
- Location & Transportation: Located in a sought-after part of the Kipps Bay neighborhood, 153 East 26th Street has endless natural rental demand. The building is within walking distance to Madison Square Park, Gramercy Park, the Flatiron Building, Kips Bay Court, Baruch College, Bellevue Hospital, and Union Square. Some notable nearby restaurants and markets include The Clocktower, Trader Joes, Eataly Flatiron, Cote Korean Steakhouse, 2nd Ave Deli, Ruby’s and The Smith. The property is also in close proximity to the 6, R, & W subway lines, M15 Buses, and East River Ferry.
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153 E 26th StNew York, NY 10010
Deal Team
Paige DeMutisDirector of Transactions & Client Advisory(646) 805-1476paige.demutis@marcusmillichap.com
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