Benchmark Real Estate Group, a full service real estate company focused on properties in New York City, purchased 55 Third Avenue between 10th and 11th streets in the East Village for $57 million. 200 Eleventh Street Associates, the same firm that developed the building in 1986, sold the mixed use property; terms of the deal were not disclosed. Los Angeles-based Mesa West Capital, a private portfolio lender, provided the financing, according to a Wall Street Journal report.
"We are excited to make 55 Third Avenue the first acquisition of Benchmark Western Real Estate Fund I, an $80 million investment vehicle raised to target multi-family value-add opportunities in Manhattan," said Benchmark Real Estate Group's co-founder and managing member Jordan Vogel.
"Our financing allowed Benchmark to capitalize on an opportunity to buy a well located building with tremendous potential in a very tight East Village submarket," adds Mesa West's Russell Frahm, who led the New York-based origination team. "Little has been done to the building since it was built in 1986, and the planned improvements will allow Benchmark to achieve rents in line with the high end residential market of the East Village and Union Square. Benchmark has a demonstrated track record of rebranding and repositioning multifamily properties in New York and we believe they will do the same with this asset."
The 12-story building features 55 one-bedroom rental units, and 10,500 square feet of retail space, which is currently 100% occupied by three tenants, including the lower east side location of the Smith, a popular American Brasserie with three locations throughout Manhattan. Russell Frahm, head of Mesa West's New York origination team, said that Benchmark plans to invest money from its $45 million first mortgage to renovate and upgrade the apartment units and increase the retail space by 15% to 20%.
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