303 4th Street
303 4th Street
Executive Summary
303 East 4th Street is a multi-family corner building located in the East Village (Manhattan), a neighborhood that, located just 10 blocks from SOHO, has exploded in popularity in recent years and has become one of the areas with the greatest gastronomic activity of New York. Obviously, this has skyrocketed returns and property values, which have been growing at a rapid pace. The building has a total of 10 units, including 5 two-bedroom units, 3 one-bedroom units and two premises on the ground floor.
The property represents a unique opportunity to acquire a finished and rented building, at 15% below the market price. All units, including the premises, currently occupied by a warehouse and a Barbershop, have been retained throughout the pandemic, the building undergoing no change in terms of vacancy.
The business plan consists of the repair of the facades and accesses, interiors of the units and the incorporation of other sources of additional income (laundry rooms, lockers, etc.), among others, the reduction of operating costs to increase the. This action plan will be carried out with the objective of increasing the annual rate of return of the building and the payment of dividends, the refinancing of the asset against cash flow re-stabilization, which will allow the withdrawal of the majority of the contributed capital, and a subsequent sale in a maximum period of time of 10 years.
16,28%
Annual rate of return
Composed of income, refinancing and asset sales.8,75%
Annual dividend
Income annually distributed as a result of the operation of the building.$20.6 M
Sale price
$3.6 M
Purchase price
Oct 2020
Purchase date
7 years
Hold period
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Market: Manhattan, Ney York
• Ranked as the second best city in the world overall, after London, in 2019 (World’s Best Cities).
• Ranked as the best city in the world to invest capital, in 2019 (Business Insider). New York is considered worldwide as a haven of value, for that reason, capitals from all over the world acquire assets in the city. It is often said that New York is a “safe, with a view”.
• New York is considered worldwide as a haven of value, for that reason, capitals from all over the world acquire assets in the city. It is often said that New York is a “safe, with a view”.
East Village
East Village is one of the best known neighborhoods in Manhattan, characterized by its low buildings, not having large chain stores, having few tourists and especially known for its nightlife. This phenomenon has caused in recent years a strong demand from the young public to settle in the neighborhood, thus becoming one of the most “trendy" neighborhoods in New York. Traditional bars, music venues and performance spaces share elegant streets with cocktail lounges and modern restaurants.
During the day, a multitude of young people visit the new boutiques and vintage stores that have been opening in recent years as a natural expansion of Soho. The proximity to the main means of transportation and the Williamsburg Bridge, places the East Village in a strategic point that will continue to have exponential growth in the coming years. With a strong incentive from the government, the neighborhood will continue a revaluation until it becomes the new “Meatpacking district”.
Trader, track record
Luxstone Partners is a company dedicated to the investment and operation of real estate asset portfolios, mainly multifamily and mixed-use, in New York City and Westchester. Luxstone’s distinctive value is based on careful execution, focusing on details, and on its deep understanding of the markets in which it operates.
From the process of acquisition, administration and management of the asset, to the construction process necessary to generate value, Luxstone Partners has extensive experience and track record in the development of opportunistic and value-added real estate assets, oriented towards long-term growth.
