50,000 sf development site on prime corner in Manhattan’s Lower East Side neighborhood.
Business Plan:
Develop the premiere boutique office building east of SoHo, capitalizing on the acute shortage of new development in the area and increasing demand from creative and financial firms.
Financial Metrics: $43m total project size;
$17m of equity;
underwritten returns – 2.49x (MOIC);
19.53% (6-year IRR)
Investment Rationale:
1. Very attractive land basis vis-à-vis a favorable ground lease and purchase of adjacent air rights
2. Extremely motivated ground lessor
3. Area is starved for new office development, supported by recent completions in adjacent neighborhoods
Status: In Soft Contract