19 West 8th Street is a mixed-use building consisting of eight apartment units and one retail store in the heart of NYC’s Greenwich Village. The apartments feature unique physical attributes (outdoor space, fire places in every unit, skylights on top floors,etc.) that JMC believed would help them outperform the market once renovated. The retail tenant’s lease, also substantially below market, was set to expire within the first year of JMC’s hold period.
JMC acquired the property for $4.925MM from an owner who had substantially neglected the building. Furthermore, the property represented a rare opportunity to acquire a Greenwich Village mixed-use building where 75% of the apartments were “free market” and could be renovated and re-leased within the first year. The retail space was also ideally positioned to benefit from the rapidly improving 8th Street corridor.
JMC avoided a competitive bidding process by sourcing the property direct from the owner, whom JMC had met through prior business dealings. Within the first year of its acquisition, JMC gut renovated all six free market apartment units and re-leased them at a 40% premium to previous rents. Rather than immediately re-lease the retail space, JMC executed a handful of short-term “pop up” leases in order to allow 8th Street to continue its ongoing gentrification. In waiting for a few stores and a nearby hotel to open, JMC was able to nearly double the income generated from the retail space once leased to the current tenant.