Invictus Property Advisors successfully closed the sale of 25 East 38th Street, a 10-unit, 100% free-market multifamily building located between Park and Madison Avenues in the Murray Hill neighborhood of Manhattan.
The five-story walk-up comprises nine one-bedroom apartments and one studio, featuring efficient layouts and smaller unit sizes that command higher rents on a per-square-foot basis. Through targeted, light value-add improvements, the buyer has a clear path to increasing net operating income.
The asset closed for $4.8 million, equating to $748 per square foot, $480,000 per unit, an 11.5x gross rent multiplier, and a 4.5% cap rate. In-place rents average approximately $75 per net square foot, with a projected ~20% upside achievable through continued turnover and modest capital improvements.
Invictus conducted a comprehensive buy-side search on behalf of a real estate private equity fund, identifying both on-market opportunities and discreetly marketed off-market assets. The buyer entrusted Invictus with underwriting, due diligence review, and site selection, ultimately leading to the successful execution of this transaction.
