Report: Mahfar’s Rental Property at 331 East Houston St. Sold For $61 Million
Lower East Side developer Samy Mahfar and Halpern Real Estate Ventures are reportedly selling a rental apartment building they developed a couple of years ago at 331 East Houston St. for $61 million. The transaction was first reported last night by The Real Deal.
According to the story, jones l.e.s, as the 11-story tower near Attorney Street is known, will be acquired by Gili Haberberg, an investment firm that runs Arkar Inc. The property includes 78 units and spans 67,600 square feet. The building is 80% market rate/20% affordable.
The developers paid about $12.4 million back in 2012 for the development site. They said the project cost around $40 million, $26 million of which was financed through a bank loan. “Sources said Haberberg is making the purchase as part of a 1031 exchange with rental properties he is selling in the Bronx,” reported The Real Deal.
According to StreetEasy, studio apartments in the building have rented in a range from $2800-3200/month. A 1-bedroom unit is currently available for $5,000/month.
Mahfar is, of course, a controversial figure on the Lower East Side, having tussled repeatedly with tenants and tenant rights groups over living conditions at his many tenement buildings throughout the neighborhood. Earlier this month, he settled a lawsuit with the state attorney general for $250,000.