Now’s your chance to purchase a 25% ownership stake in a modern residential building at 99 Suffolk St. Massey Knakal listed the property a few days ago. The building, located just above Delancey Street, is right next door to the Clemente Soto Velez Cultural Center. The Lower East Side Montessori is on the ground floor. There are 35 apartments, which the brokerage describes as “temporarily rent stabilized.” Let’s go to the listing for an explanation:
The building benefits from a 421-a tax abatement program until June 2015. As leases expire, in addition to the Rent Guidelines Board allowable increase, the 421A program allows the landlord an additional 2.2% rent increase per unit. However, the abatement is set to expire in June 2015 (20% of the tax increases are abated until June 2015). The average residential rent is currently running at approximately $55/sf in a market that commands approximately $80/sf. Once the 421-a burns off on June 30, 2015, the units can be brought up to free market value as leases expire.
the asking price is $4.5 million, plus a new minority owner will be required to assume responsibility for a $1,950,000 portion of the mortgage. 99 Suffolk St. was built in 2003. Massey Knakal said the building could be converted to condos. Current residential rents range from $1900 for studio apartments to about $3500 for 2-bedrooms.