Property Tales
Real estate in Manhattan is expensive, and that's a fact. That said, there are still pockets of opportunity where you can buy a multi-unit building for less than a million dollars. Those properties might require some additional investment, time and patience to fix them up. But, all things considered, they've got to be considered really good buys in today's market. -Shimon Shkury, partner and broker, Massey Knakal, Northern Manhattan/Bronx office
MANHATTAN'S CACHET and convenience are a great allure. Most people who move to New York City to pursue dreams and kick-ass ambitions, imagining themselves in Trump-style digs, are shocked by how much it costs to get so little space with few to no amenities.
Even those with reasonable resources and/or reliable income sources are stymied. Exorbitant asking prices for condos, coop apartments, townhouses and small multi-unit apartment buildings can easily scare off first-time buyers seeking a decent place to live at an affordable cost. As for rentals, month to month or year-long leases are so pricey, many would-be takers feel forced to flee to the boroughs instead.
Shimon Shkury, Massey Knakal Northern Manhattan specialist, invites them to reconsider.
"The common perception among potential middle-income real estate buyers is you can't find anything affordable anymore. That's just not accurate. Right now, the best place to find affordable multi-unit residential buildings in Manhattan is Harlem. More specifically, in East Harlem. West Harlem, too, has some availability, but west of 5th Ave. is already a mature market, and prices tend to be higher," says Shkury. "And, throughout Harlem, you find beautiful buildings. Historically, the area was an almost suburban enclave for wealthy people, and the architecture reflects their resources and good taste. Now, some blocks are still a little rough, but the area is cleaning up quickly, with the opening of many new shops and restaurants adding to the quality of life."
Shkury recommends that anyone thinking of buying in Harlem go to the neighborhood and walk around to get a sense of street life.
"You have to be ready to deal with the fact that some blocks are still marginal. But that also means that there's tremendous upside potential for investments in properties on those blocks as they get bought up and cleaned up, following the current trend for the entire area."
Massey Knakal's recent listings in East Harlem include a 16-foot-wide four-story townhouse on E. 117th St., between 1st and Pleasant Aves. The building's 3840 square feet are sectioned into four apartments (one per floor) and an unfinished basement. It's suitable for use as a single family dwelling, or for rental of the existing units for a projected annual income of $60,000. The asking price is $750,000.
Another East Harlem multi-unit residential property, a 23-foot-wide four-story building on E. 119th St., between 1st and Pleasant Aves., has approximately 7084 square feet divided into eight apartments (two currently vacant). The asking price is $630,000, and the actual annual revenue is $65,604.
On 5th Ave. between 127th and 128th Sts., there's a 19-foot-wide five-story-plus-cellar building of architectural distinction for an asking price of $950,000. The building has approximately 5000 square feet and awaits customization as residential rentals or condos, or a stately and luxurious single-family dwelling. The property already has Department of Buildings approval for five floor-through apartments and a certificate of non-harassment.
Or, in West Harlem, currently listed is a 13.83-foot-wide four-story townhouse with basement (about 3043 square feet, total) on W. 123rd St. between 7th and 8th Aves. at an asking price of $675,000. The building is suitable for single-family dwelling or conversion to four rental units.
And, on W. 136th St., between Adam Clayton Powell and Malcolm X Blvds., there's a 16.5-foot-wide, four-story townhouse shell available for $625,000. The shell contains approximately 3243 square feet and has about 2231 square feet of air rights. Delivered vacant, the building is suitable for customization as a single-family dwelling or for live-in with rental units.
"Those properties are fairly typical of Harlem availability, and they come to the market fairly frequently," says Shkury. "But they're also bought quickly. So, realistically speaking, it's necessary for potential buyers to keep searching actively." o