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Single-Tenant Net Lease Property For Sale in Upper East Side of New York City

Wednesday, April 27, 2016

HFF is proud to offer investors the opportunity to acquire 123 East 86th Street, a superb triple net lease property occupied by Citibank in the heart of Manhattan's affluent Upper East Side.

New York City 123 East 86th StreetThe 7,018-square-foot net lease property is located between Lexington Avenue and Park Avenue on the north side of East 86th Street in the Upper East Side. The single-tenant net lease property is located directly on the 86th Street retail corridor and close to the 86th Street subway station (4,5,6), one of New York City's busiest. The triple net lease property is also strategically located in one of the city's most dense and affluent neighborhoods.

Built in 1927 and renovated in 1998, the net lease property benefits from the phenomenal residential density and remarkable transportation access of the Upper East Side. A renowned banking location in New York City, this Citibank branch ranks 26th out of 80 locations in Manhattan and 53rd out of 808 branches nationwide in total deposits, placing it in the top seven percent of the company's portfolio.

Additionally, 23.193 ZSF of unused air rights provide tremendous long-term upside as a potential development site. The triple net lease property combines investment grade credit and significant near-term upside, making it an excellent investment opportunity for interested parties.


Triple Net Lease Property Investment Benefits

  • Near-Term Rent Upside: Substantial near-term upside through a rent increase associated with the first 10-year option in five years to 90 percent of Fair Market Rent.
  • Credit Tenant with Premium Performance: Citibank is a subsidiary of Citigroup Inc, which holds an "A" rating according to Standard and Poor's. Currently, Citibank is the fourth largest bank in the U.S. with $1.4 trillion of assets and 20th largest in the world.
  • Affluent Banking and Living Location: With an average household income 50 percent higher than the Manhattan average, landlords are drawing top urban retailers while rents are experiencing significant growth. Noteworthy retailers include H&M, Whole Foods, Best Buy and Sephora.
  • Long-Term Development Opportunity: An investor has the ability to own a development site with 30,210 ZSF as-of right, which would make for an ideal boutique luxury residential development, blending in well with an influx of institutional capital spawning new retail and residential developments in the area.

123 East 86th Street presents a unique opportunity for investors to acquire a single tenant, triple net lease, credit investment trophy asset with bond stable cash flow and substantial upside potential. For more information on the property, contact HFF Managing Director Rob Rizzi in HFF's New York City office.





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