US - Jacksonville, FL
JLL has been retained on an exclusive basis to arrange for the sale of 97 Second Avenue, a six-story mixed-use building located on Second Avenue between East 5th and 6th Streets. Comprised of ten apartments and one store, the 80% free market walk-up spans 10,950 gross square feet.
The residential units consist of one 2-bedroom, five 3-bedroom and four 4-bedroom apartments. All free market units have been recently updated with quality finishes but are currently renting for an average of $1,550 per bedroom – a >15% discount to trending market rents. The regulated units are renting for an average of $1,950 per month, and the ground floor store is leased to Getir on a new, 10-year lease at approximately $132 PSF.
Ideally located and configured as shared apartments perfect for roommates and young couples, the Property caters to a large swath of New York City tenants. Many of the East Village’s most popular restaurant and nightlife destinations lie in close proximity to the Property along the 2nd and 3rd Avenue retail corridors. Convenient access to the 4, 5, 6, B, D, F, M, L, N, Q, R, W train lines offers ease of access to all of Manhattan and the Boroughs. Union Square, Washington Square Park and Tompkins Square Park provide renters with an abundance of outdoor / green space options.
97 Second Avenue is poised to benefit from a post-COVID rebound in rents. Due to its primarily free market status and transit oriented location in the heart of the East Village, the property will capitalize on surging rent growth throughout the remainder of New York City’s post-pandemic recovery. Near term growth drivers include the ongoing city-wide rental recovery and the full return of international students to NYU, while long term neighborhood dynamics are supported by the supply-constrained nature of the surrounding housing stock.
97 Second Avenue will appeal to investors seeking a meticulously renovated property, with diversified income streams and multiple demand drivers. The confluence of the Property’s central, downtown location and proximity to NYU will galvanize sustained rent growth over the duration of the investment. Accordingly, the Property offers an excellent opportunity to acquire an easily managed and thoughtfully maintained asset located within a well-established sub-market.