By assuring a three-week closing period, APF Properties pre-empted a competitive bidding process. The firm secured this prime asset in the Grand Central sub-district of Manhattan for $33 million in 2000, going from contract to financing and closing in under 30 days. The acquisition cost of $188/sf was 15% lower than the price paid for 45 West 45th Street, the most comparable asset that traded just three months prior to APF Properties’ acquisition.
A strategic repositioning included a variety of building upgrades and the complete redevelopment of the existing retail. As a result, two non-credit retail tenants were replaced with Chipotle and FedEx, contributing to the doubling of annual NOI to almost $6 million.
In 2013, the property was refinanced with a low leverage $70 million mortgage. Investors so far have been paid out $12 for each invested dollar in the year 2000.