The Roosevelt is a 47,000 SF mixed-use building consisting of 31 residential units, one retail unit (7,000 SF) and a 74-space sub-grade garage. The property is located in Jackson Heights adjacent to the Roosevelt Avenue/74th Street Station, the second busiest station in Queens and 15 minutes from midtown Manhattan. Completed in 2012 as a for-sale condominium development, the property’s condo quality units and location make it the most desirable rental product in Jackson Heights. The retail is fully leased to CityMD on a long-term basis, as is the garage to a local operator.
Prior to closing, JMC negotiated highly accretive seller financing on a vacant building and then extended the closing period to effectuate a tax credit program (421-A & ICIP) with New York City. Subsequent to closing, JMC felt it could fully lease the building within 12-18 months (including parking and retail) with a modest renovation program and by leveraging the property’s unique position in the market, namely the property’s twenty-one two bedroom/two bath units, a rarity in the neighborhood. Furthermore, the property’s retail space represented a unique opportunity to secure a high-quality tenant given its size, ceiling heights and location steps from five subway lines.
JMC converted the fully vacant building to a high-end rental building with record-setting rents for Jackson Heights. JMC also leased the full retail space to City MD for a 15-year term at record retail rents for the avenue. After refinancing the asset in accordance with the business plan, JMC was approached by an off-market, 1031 buyer with a compelling price that JMC accepted.