Property Description

Trophy building at the heart of Lincoln Square, a highly visible corner across from Welles Park and Small Cheval. The building is anchored by L&M Deli, a neighborhood staple serving deli sandwiches, high-end groceries, as well as beer, wine, and liquor. In addition, there are four large apartments (1) 3 bed / 1 bath and (3) 2 bed / 1 baths. The building underwent significant renovation in 2007 including the replacement of all copper water lines, all electric, a new main water line, new windows, and the cosmetic renovation of all units. In 2022, new HVAC was installed for all of the retail space. The apartments all have central air AC with clean, rental quality finishes (hardwood floors, laminate counters, and entry level appliances). Laundry is a shared community room on the 2nd floor of the building. L&M Deli has been in business at this location for six years with four years remaining on their lease and (2) five-year options. The space has had extensive upgrades including two large, walk-in freezers, a 1,500 SF air-conditioned prep kitchen in the basement, as well as ventilation and black iron for the kitchen. In-place gross revenue is $229,000; a 10.26x Gross Rent Multiple; and a 6.9% cap rate on in-place income. Existing apartment rents are below-market, averaging $2,173 for the 2 Bed / 1 Bath units and $2,575 for the 3 Bed / 1 Bath. If rest to market rents, a new buyer could achieve stabilized gross revenue of $250,000 within one year of ownership; a 9.6x stabilized Gross Rent Multiple and a 7.7% return-on-cost. A new buyer has the opportunity to mark the existing apartment rents to market amid growing rental pressure and a lack of available supply, all while owning a trophy building with cash flow in place.

Property Features