Long-Term Credit Leased NYC Office and Retail Building for Sale

Wednesday, July 12, 2017

Update:  HFF announced the closing of this sale in December 2017.  For a listing of current real estate offerings, please click here.

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing for sale 260 East 161st Street, a 276,622-square-foot, recently renovated and stabilized mixed-use office and retail building centrally located along East 161st Street in New York City. The property is proximate to major employment drivers and area amenities, including Yankee Stadium, the Bronx County Court system and local and regional transportation networks, including the New York City Subway (4, B and D lines), Metro-North Railroad (Melrose Station) and the George Washington Bridge.

Completed in 1930 and renovated most recently in 2016, the mixed-use office and retail property for sale provides mission-critical office space to NYC agencies associated with the Bronx court system. These agencies comprise 78 percent of all office space at the property, while the remainder is occupied by Montefiore Medical Center, one of New York state’s largest hospital systems and employers. The property features a tenant roster with a weighted average lease term of 13.8 years, providing the property robust and stable long-term cash flow with contractual increases. The highly trafficked retail component of the 92-percent-leased building is anchored by investment-grade tenants Walgreens and Starbucks and complimented by Dunkin’ Donuts, Chipotle Mexican Grill, T-Mobile and Checkers.

Mixed-Use Building for Sale Investment Highlights

  • Credit-Driven Cash Flow and Significant Contractual Revenue:  Ninety-two percent leased, the office and retail asset has a tenant roster comprising of investment-grade and private-market-equivalent credit users.
  • Extremely Accessible Location with Perfect Transit Score® and High Walk Score®:  The mixed-use property for sale is located in the epicenter of the Bronx, close to Yankee Stadium, the Bronx Supreme Court, Bronx Family and Criminal Court and the Bronx County Hall of Justice. Multiple forms of transportation include commuter rail, subway, bus and car, providing access to Midtown Manhattan in less than 20 minutes. The property has a perfect Transit Score® of 100 and a high Walk Score® of 97, with daily necessities and an array of transportation and entertainment amenities within a 10-minute walk. This ensures strong tenant demand.
  • Heavily Trafficked Retail Corridor:  The 161st Street retail corridor is home to other area retailers, including Bank of America, Waldbaums, Showcase Cinema De Lux, and CVS Pharmacy.
  • Supply-Constrained Peer Set:  One of the sizeable office buildings located within 25 blocks of the Bronx County Court system, forever satisfying civic demand; the peer set averages 99 percent occupancy.

For more information on 260 East 161St Street or other New York City office properties for sale, please contact Andrew Scandalios, Graham Stephens, David Giancola or David Fowler in HFF’s New York City office. For information on acquisition financing for this property, please contact Mike Tepedino, Michael Gigliotti, or Christopher Peck. To view current real estate investment sales listings, please click here to view HFF’s property search page.

By Topics