A five-story, walk-up apartment building at 92-01 37th Ave. in the Jackson Heights section of Queens changed hands in an all-cash transaction valued at $7.7 million.
Two Queens Apartments Shed for Nearly $20M
Also, a six-story, elevatored apartment building at 86-11 Whitney Ave. in the Elmhurst section of Queens was sold in an all-cash transaction valued at $11.2 million.
Friday, July 25, 2008
All-cash apartment building sales
Posted by Queens Crapper at 12:30 AM
Labels: Elmhurst, Jackson Heights
I suspect money laundering. The capitalization rates are crap. The 8% is actually good by NYC standards, but the 4% is a complete joke. It takes 16 years to see a profit with an 8% rate, who in their right mind would be stupid enough to get a 4% rate when the NYC average is 5%?
I doubt that these "investors" have any intention of holding the buildings for more than a couple of years. They will do what the big wall street equity firms do, try to raise rents and sell in a few years rather than wait out for the 16 years to see a profit.
I forgot to add, since they did not mortgage the purchase they will be slapped with taxes on all rents. This does not happen when the rents and leases are assigned directly to the bank to pay the mortgage. These "investors" do not seem to know the basics of real estate investing.
I live & grew up in this neighborhood...Actually I'm right smack on the border of JH & Elmhurst...I am familiar with both bldgs. The one in Elmhurst is a co-op, is it not? Alot of the bldgs off of Broadway between lets say Pettit Ave. & Whitney are...so what's to happen to all those co-op owners/investors? As a matter of fact, it seems that the neighborhood has been experiencing this "exchange of hands" alot recently...
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