NEW YORK, NY – New York-based private investor, Oak B. Management has acquired a two-building, mixed-use portfolio in Manhattan’s Midtown East neighborhood from nonprofit organization JT Tai & Company Foundation for $41.5 million.
The 105-unit portfolio consists of 959-961 Second Ave. and 246 East 46th St. Oak B. Management plans to renovate and reposition the existing buildings with a focus on retail lease-up.
Situated on the corner of Second Ave. and E. 51st St., the four-story property at 959-961 Second Ave. offers 10 apartment units and two commercial units.
The six-story building at 246 East 46th St. features an elevator, 12 commercial spaces and 81 apartment units, including 56 studios, five one-bedroom units, 19 two-bedroom units and a single duplex residence.
The Midtown East neighborhood is currently undergoing rezoning on the 78 blocks between Third Ave. and Madison Ave., from E. 39th St. to E. 57th St. The rezoning is expected to reinforce the neighborhood as a high-profile commercial business district that offers incentives for sustainable class A office development, transit upgrades, enhanced pedestrian access, open space and active retail corridors.
JLL arranged the sale on behalf of the seller. The JLL capital markets team that completed the transaction comprised chairman Bob Knakal, managing directors Clint Olsen and Jonathan Hageman, EVP Eddie Shuai and analysts Stephen Godnick and Jacob Russell.
“This was an incredible investment opportunity that provides the buyer with a runway to future upside through 32,336 square feet of development potential at 959-961 Second Ave., while doubling down on a location that affords tenants of both properties the convenience of walking to working, tremendous restaurant and retail offerings and multiple transportation options,” says Knakal.
“With nearly seven million square feet of new commercial office space expected to come online over the next 20 years, East Midtown is primed for a remarkable revival and these assets sit at the heart of it all,” says Olsen. “The buyer intends to renovate and reposition the properties with a focus on retail lease up, positioning the investor to capitalize on the record-breaking apartment rental market and the assets’ proximity to prominent attractions as tourism stages its comeback.”
The two properties were part of a four-building portfolio being offered for sale by the JT Tai & Company Foundation. A remaining property at 17 E. 70th St. is still available for sale.