25 K Sq. Ft. Retail Condominium in Manhattan Sold for $50 M
- Dec 13, 2013
As the Manhattan commercial real estate market heats up, a retail condominium on the Upper West Side changed hands last week in a $50 million transaction.
The 25,000-square-foot property was sold to an unknown entity by real estate fund manager ALTO Private Investments which, according to an official statement, almost doubled its investment two years after the acquisition. The property consisting of four retail units had been purchased by ALTO with Florham Park, N.J.-based real estate firm The Klein American Group in 2011 for $31 million.
“Two years after the acquisition and with the improvements we instituted, we sold the property at a gross return of almost three times our original equity investment,” said Mody Kidon, ALTO chairman and co-founder.
Located at the intersection of 70th Street and West End Avenue on the ground floor of 200 West End Avenue, the 173-unit luxury condominium tower was built by Clarett Capital LLC in 2008; the retail property was leased to CVS for 13 years at the time of purchase. Immediately after purchasing the retail units, ALTO signed three additional tenants, each with 15-year leases, increasing occupancy and rental revenues by 40 percent.
ALTO focuses on the acquisition of value-add commercial properties by forming local joint ventures and co-investing with partners in local real estate assets. The company has invested $285 million in 14 commercial properties totaling 1.8 million square feet of space in top markets in the United States.