438 W 51^st Street

Comes with a beautiful Dental Center! 

Ownership rebuilt this building and spent millions converting it to a Medical Office Building/Surgery Center. They recently reduced the sale price to effectuate a quick closing.  

$20,000,000 is a 6.04% cap rate on the in-place NOI with tremendous upside due to the available vacant space.

Valley is the lender and the loans total $17,600,000 at 5.5%. The loan matures in May of 2043 and adjust every 5 years. I’m confirming, but was verbally told the next adjustment is 2028. We think Valley would be allow a purchaser to assume the loan.

The surgery center and a dental tenant have restrictions on tenancies at the building. 

Lease: Asking $55 + electric (proforma based on $50.00psf).  It’s a new medical building and additional information follows:  

• Lower Level is a built dental suite of 1,761 RSF
• Ground Floor is 5,182 RSF. (currently a physical therapy group is interested in the space).
• 2^nd Floor’s 5,898 RSF, back portion – 4,010 RSF & front portion 1,888 RSF – plan attached.
• 3^rd Floor’s back portion has 1,747 RSF remaining, we recently leased the other portion to a dentist.

TOTAL COMBINED Ground & 2^nd Floor is 11,080 RSF.

• New Construction – Handicap Accessible, new elevators and Article 28 approved Building.
• Surgery Center on-site unaffiliated with any hospitals – Focused on Ortho, Spine & Pain Related Surgeries
• Seeking $55 + Electric (separately metered)
• Landlord will deliver a white box.
• Tenant will build-out its space to its specifications.
• In lieu of OPEX there will be 3.0% annual rent increases and a $5 rent increase in year 6.
• Nine (9) months of Free Rent is being Offered in lieu of TIs.
• Term: 10 years or more.