102 Norfolk Street, Home of The Back Room, Asking $11.95M
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102 Norfolk St, Photo: Massey Knakal
While 100 Norfolk Street barrels toward a glassy cantilevered future (now a pit), its pre-war neighbor one door to the north has hit the market. A new real estate listing for the property went live this week via Massey Knakal, proposing a price of $11.95 million. Interesting that said development is not even mentioned in literature, though. Only SPURA…
Anyway, 102 Norfolk is a mixed-use building that’s predominantly rent stabilized – 21 of the 25 units are protected. (One tenant is paying $491 for a one-bedroom) In real estate parlance, this equates to an investment that provides “tremendous upside” (i.e. kick out the tenants and upscale). Its commercial tenants are three-year-old Saro Bistro and the Back Room “speakeasy,” which has a lease until 2020.
There are two commercial restaurant/bar units on the ground floor and 25 apartments on the upper floors. Of the 25 apartments, there are five on each floor and they consist of 21 Rent Stabilized and 4 Free Market units. The commercial tenants, Saro Bistro and The Back Room, are considered neighborhood staples and collectively pay approximately $27,927 in real estate tax pass-throughs. The offering provides tremendous upside in the rents considering 85% of the apartments are Rent Stabilized and the Free Market units are also renting at below market levels. The Back Room’s lease expires on October 31, 2020, plus there is one 5 year renewal option at market rent. There is a light and air easement with 100 Norfolk, the adjacent property to the south. The building is across the street from the Seward Park Urban Renewal Area (SPURA).