Investment Overview

THE OFFERING Marcus & Millichap is pleased to offer the sale of 9 West 107th Street, located in the prime Manhattan Valley neighborhood on the Upper West Side. Less than 50 feet away from Central Park, this 12-unit, walk-up property is ideally situated between Manhattan Avenue and Central Park West. Professionally owned and operated by the same partnership for over 20 years, 8 of the 12 apartments were fully gut renovated, allowing investors to take advantage of limited local law 1 lead compliance and a meticulously “16 year old” building. 7 out of 12 apartments have preferential rents allowing investors to capture future rental upside upon unit turner. The delta between actual and legal DHCR rents is ~64,000/year. The building is conveniently located on block from Central Park West, the Cathedral Parkway 110th Street subway station, and Frederick Douglass Academy II Secondary School. THE OPPORTUNITY The Building: This pristine, 12-unit walkup building is composed of 2 studio, 2 two-bedroom and 8 spacious three-bedroom apartments. The asset is running on oil #2 and has no gas. The electric system is upgraded and tenants pay for their own electric. Preferential Rents: 7 out of 12 apartments have preferential rents allowing investors to capture future rental upside upon unit turner. The delta between actual and legal DHCR rents is ~64,000/year. J-51 Tax Exemption: This property currently benefits from a J-51 tax exemption that started in 2008 and runs 20 years, keeping the billable assessed value artificially low. This exemption is projected to be fully phased out by 2028. The building was fully renovated in 2008 through the UDAA program and was granted this tax exemption. UDAA Program - The Urban Development Action Area Project (UDAAP) Tax Incentive is a real property tax exemption for rehabilitation or new construction of housing on formerly city-owned land. Developers receive up to a 20-year exemption from real estate taxes on the assessed value of the building. Prime Location & Transportation: 9 West 107th Street is well-situated near Central Park, the B and C trains, the M7, M116, M10, M3, and M4 bus lines and the 5-star rated Frederick Douglass Academy II Secondary School.