$5,500,000

CONFIDENTIAL EXECUTIVE OVERVIEW\n\nThis Mixed-use investment opportunity is situated in one of Long Island City’s most established and supply-constrained corridors, just moments from Vernon Boulevard and the East River waterfront. The location benefits from strong residential density, consistent retail foot traffic, and immediate proximity to transportation, open space, and neighborhood amenities.\n\nThe property spans approximately 5,190 square feet on a 2,500-square-foot lot and is configured as a 25-foot-wide building consisting of:\n\nGround-floor retail\nRear artist studio\nFour free-market residential apartments above\n\nThe asset offers a balanced profile of durable in-place income and near-term residential lease-up potential within a submarket that continues to demonstrate long-term rental depth and capital demand.\n\n\n\nPROPERTY OVERVIEW\nLot Size: 2,500 SF\nBuilding Dimensions: 25 ft x 42 ft\nCurrent Building Area: 5,190 SF\nBuilding Class: S3 – Primarily Four-Family with One Store & Office\nZoning: M1-4 / R6B\n\nThe property’s configuration allows for stable retail income at the base while preserving residential upside. The building width and layout provide efficient residential floor plates relative to many narrower mixed-use assets within the submarket.\n\nINCOME PROFILE & CAP RATE ANALYSIS\n\nThe property currently generates:\nIn-Place Gross Revenue: $326,724\nExpenses: $39,167\nIn-Place Net Operating Income: $287,557\n\n\nUpon stabilization of the residential units to market levels:\nPro Forma Gross Revenue: $342,320\nPro Forma Net Operating Income: $303,160\nThis supports a pro forma capitalization rate of approximately 5.5%.\n\n\nRESIDENTIAL COMPONENT\nThe four residential units are fully free-market and currently vacant. This presents an immediate opportunity to lease at prevailing market rents without regulatory restrictions.\n\nRecent leasing benchmarks in the Vernon Boulevard / waterfront corridor indicate:\n$70–$85 per square foot annually\nOne-bedroom units: approximately $3,400–$4,200 per month\nTwo-bedroom units: approximately $4,800–$6,000+ per month\n\nAbsorption within boutique buildings lacking full-service amenities remains steady due to strong tenant demand for proximity to the waterfront, Midtown Manhattan access, and neighborhood retail offerings.\n\nThe free-market nature of the residential units enhances flexibility and reduces regulatory exposure relative to rent-stabilized or partially regulated assets.\n\nCOMMERCIAL TENANCY\n\nThe ground-floor retail tenant is secured under lease through 2029 and does not hold a renewal option. This provides predictable cash flow through the remaining lease term while preserving future flexibility for repositioning.\n\nRetail corridors along Vernon Boulevard have demonstrated resilience due to consistent pedestrian traffic, growing residential density, and limited available frontage. The absence of a renewal clause allows ownership to reassess tenant mix and rental economics at lease expiration.\n\nZONING & STRATEGIC OPTIONALITY\nThe property is located within an M1-4 / R6B zoning district. This dual zoning structure supports continued mixed-use occupancy and offers strategic long-term flexibility, subject to customary approvals.\n\nInvestors may consider multiple strategies:\n\n- Hold and stabilize for durable cash flow\n- Incrementally enhance residential revenue\n- Reposition the commercial component upon lease expiration\n- Evaluate longer-term redevelopment potential\n\nThis flexibility adds structural value beyond the current income stream.\n\nSUBMARKET FUNDAMENTALS\n\nLong Island City continues to benefit from:\n\n- Proximity to Midtown Manhattan (one subway stop)\n- Capital demand in LIC has remained resilient due to its combination of accessibility, rental depth, and waterfront positioning. The Vernon Boulevard corridor in particular remains one of the submarket’s most sought-after residential pockets.\n