Acquisition:   227 West 61st Street, New York, NY
Price:              $33.03 million

In August 2005, Cofinance Inc. (“Cofinance”) in partnership with a private real estate investor, completed the purchase of a half-acre site at the address 227 West 61st Street (“227 West 61”). 227 West 61 is improved with a 73,500 SF four-story building constructed in 1927 and later renovated in 1995.

Multiple broker relationships and a difficult seller permitted Cofinance to effectively work the bid process. Because of its focus and persistence Cofinance was able to purchase the property for $1.5m less than a higher offer.

The building was leased to the Board of Education through 2010. The Board of Education operates the Beacon High School in the building that is one of the top-ranked schools in the city.

227 West 61 is zoned R8 which permits the development of 138,105 SF based on a 6.02 FAR per square foot of land. The plan was to “land bank” 227 West 61 until the Board of Education lease expires. 227 West 61 unencumbered by a lease is worth in excess of $350 per FAR foot. Once the Board of Education lease expires, 227 West 61 can be sold unencumbered as a residential development site, its highest and best use, or redeveloped.

Located in the Lincoln Square submarket, 227 West 61 is a half block from Fordham University, John Jay College and Lincoln Center, all of which announced aggressive expansion plans. In addition, Apollo, Brack Capital, and LHL all have major residential towers under construction.

Investment Highlights

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