Got $135 million? An Astoria rental building is up for grabs

Although the eight-story Queens property benefits from the 421-a tax break, the new owner will not be required to charge tenants below-market rent

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An Astoria, Queens, apartment building is on the market.

The eight-story rental property at 12-15 Broadway is for sale for $135 million. Brokers Jason Meister, Marion Jones and David Robinov, who are with the firm Ackman Ziff, are marketing the property for seller David Lubinitsky, a technology executive. Lubinitsky took control of the 213-unit building after paying his partner, Shibber Khan, $88 million, shortly after the pair developed the property in 2014.

The deal comes with a few perks, according to Meister, but there is one major selling point. The property received a 421-a tax break, which expired at the beginning of this year. Since the building is located in one of the program’s exclusion zones, which did not require a developer to include affordable housing, the new owner does not have to charge tenants below-market rents.

“Because 421-a expired and there’s not a lot of opportunities to build new rental housing right now, there’s more interest for this property among buyers,” Jones said.

The property also has a low-interest rate mortgage that a buyer will have the opportunity to take over, rather than having to obtain new financing, Meister said.

Correction: David Lubinitsky took control of 12-15 Broadway after paying his partner, Shibber Khan, $88 million, shortly after the pair developed the property in 2014. That fact was misstated in an earlier version of this article published online March 29, 2016.

Source: http://www.crainsnewyork.com/article/20160329/REAL_ESTATE/160329858/got-135-million-an-astoria-rental-building-is-up-for-grabs