AIR Communities sells UWS rental for $21M

An unknown buyer using the entity Tempo W 73 LLC paid $21 million to AIR Communities through the entity Air 240 West 73rd Street Co-Owner, LLC for the 205-unit rental building Tempo (H6) at 240 West 73rd Street in Upper West Side, Manhattan. AIR Communities is a spinoff of AIMCO. The buyer entity is in care of the law firm Breuer Herskowitz.
Prior to this, AIR Communities had sold more than $222 million to Alchemy Ventures, ABJ Properties and HUBB NYC since 2021.
The deal closed on August 14, 2023 and was recorded on August 17, 2023. The property has 109,290 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $192 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.) The contract date was July 14, 2023.

The purchased was financed with a $19.8 million loan from Dime Community Bank.
The seller bought the property on September 29, 2004, for $25.8 million.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes Jenny Saunders, head officer and Jerry Velazquez, site manager. The business entity is Air 240 West 73rd Street Llc.

The property

The parcel has frontage of 80 feet and is 102 feet deep with a total lot size of 8,224 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The property is in the West End-Collegiate Historic District Extension. The city-designated market value for the property in 2022 is $22.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation in the last year.

Development

On the lot, there is one active major alteration construction project for a 200-unit, 110,234 square-foot R-2 building. The project was submitted by Christian Lemon with plans filed October 23, 2020 and it has not been permitted yet.

The neighborhood

In Upper West Side, The majority, or 59 percent of the 52.9 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 23 percent of the space. In sales, Upper West Side has the 7th highest sale turnover among other neighborhoods in the city with $2.2 billion in sales volume in the last two years. For development, Upper West Side has 2.8 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Manhattan. It had 2.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 18 of the 28 commercial properties representing 450,980 square feet of the 554,397 square feet. The largest owner is 250 West 73rd Llc, followed by Aimco and then Brodsky Organization.
There are no active new building construction projects on this tax block.

The majority, or 43 percent of the 554,397 square feet of built space are elevator buildings, with walkup buildings next occupying 24 percent of the space.

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