JLL tapped by The Bowery Mission to market 45-51 Avenue D in New York’s Alphabet City
Mixed-use redevelopment opportunity in East Village located within Qualified Opportunity Zone; organization to use funds from sale to boost services across city
NEW YORK, July 15, 2020 — JLL Capital Markets was selected by The Bowery Mission to market a mixed-use redevelopment opportunity at 45-51 Avenue D in the Alphabet City neighborhood of New York’s East Village. The property offers numerous investment strategies that will enhance the residential offerings in the neighborhood.
45-51 Avenue D is ideally located within one of five designated Opportunity Zones in Manhattan south of 96th Street. The property has two existing, conjoined structures that will be delivered vacant. 45 Avenue D is a six-story building that spans approximately 48-feet wide, totals 20,174 square feet, and contains an elevator. 51 Avenue D is a two-story building that spans approximately 44-feet wide and totals 6,141 square feet. Investors have the flexibility to renovate either one or both structures into a valuable residential asset.
Alternatively, investors can elect to demolish both structures to pave way for an approximately 92-foot wide, ground-up project that could be developed into a building with approximately 53,338 zoning floor area through New York City’s Inclusionary Housing Bonus Program (IHB).
In the event an investor decides to reposition the existing six-story structure and demolish only the two-story structure, there will be approximately 22,422 ZFA remaining as-of-right that can be further increased to approximately 33,164 ZFA through the IHB program for a ground-up project on the remaining 44-foot wide lot.
The property at 45-51 Avenue D is surrounded by several new multifamily developments in the neighborhood. These include The Adele at 310 East Second Street, The Niko East Village at 751 East Sixth Street, and The Stanton at 196 Stanton Street. With the Jobs Act of 2017 dedicating this census tract as an Opportunity Zone, 45-51 Avenue D presents investors with a tax advantageous opportunity in an established yet burgeoning neighborhood with multiple strategies.
The JLL Capital Markets professionals overseeing the sale assignment for The Bowery Mission include Chairman of New York Investment Sales Bob Knakal, Managing Directors Guthrie Garvin and Jonathan Hageman, and Directors Alexander Ball, Solomon Michailow, Jack Norton, Jacob Russell and Patrick Yannotta.
“The Bowery Mission had planned to renovate the facility to add additional beds and modernize the site to fit its evolving programs,” said Hageman. “The Bowery Mission realized the privately raised funds it would need to renovate the Avenue D property would be better utilized to enhance its proven services for men, women and children experiencing homelessness and poverty across The Bowery Mission’s eight other locations in New York, New Jersey and Pennsylvania.”
“An investor will greatly benefit from the property’s location within one of only five designated Opportunity Zones in Manhattan south of 96th Street,” said Knakal. “The two conjoined buildings at the site will be delivered vacant, and as a result, there are several viable investment strategies that will unlock tremendous value for the buyer.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of more than 94,000 as of March 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.