Free Market Building in Prospect Heights

Overview

TerraCRG has been retained to exclusively represent ownership in the sale of the mixed-use building at 554 Vanderbilt Avenue in the heart of Prospect Heights. The unique property consists of 4 free-market residential units and one large commercial space. The property spans 6,400 square feet across 6 stories and each residential unit has access to private outdoor space (3 private terraces, 4 private balconies and one roof deck). A legal three-story addition was completed in 2008 through an Alt-1, resulting in the issuance of a new certificate of occupancy in December 2009, exempting the building from Good Cause Eviction until December 2039. The building has very low expenses as it is tax-class protected and each unit is responsible for paying their own heat and electric bills. The retail space was previously occupied by long-time neighborhood staple Cataldo’s and has now been taken over by the operators of the popular restaurant next door Alta Calidad with a new concept opening in the next few months. Alta Calidad, which has won multiple culinary awards since opening in 2017, is part of a larger hospitality group - Hospitality HQ that operates food-halls and restaurants across the country. The property has significant rental upside as residential rents haven’t been increased in years and assuming market rents the property should have a gross income of ~$380K/year. At asking price the property can be acquired at an attractive basis of $734/SF and a projected Cap Rate of ~7%.