5 EAST 80TH ST. TO BE SOLD AT AUCTION ON JUNE 27, 2017 WITH A MINIMUM BID OF $15,000,000. We have been hired as Exclusive Agent to facilitate this auction to be conducted by the U.S. Marshals Service.5 East 80th Street is a magnificently renovated 25'-wide, 6-story limestone single family mansion with elevator and over 13,000 interior square feet. The property has undergone a multi-million-dollar renovation and is in exceptional condition. It is currently leased until 2022, with a potential option to extend until 2032. There is no current access for inspections, interior photos or floor plans. It is anticipated that the asset will sell at a very deep discount to market value. The most recent comparable sale is 12 East 73rd Street, a renovated 22.5'-wide, 5-story limestone mansion with 10,410 interior square feet. It closed for $41,000,000 or $3,938 per square foot in January 2017 after only 165 days on the market. This sale values 5 East 80th Street at over $51,000,000.We are looking for a passive long-term investor (an institution, family office or individual) well acquainted with luxury Manhattan real estate and interested in a very large 15-year capital gain with minimal current net income of about $150,000 p.a. Based on the performance of luxury Manhattan real estate over the past 15 years or more, it is easy to project future appreciation of at least 3% p.a. over the next 15 years. That means a house valued today at $50,000,000 should be worth $77,000,000 in 15 years with 3% p.a. appreciation. Assuming 5% p.a. appreciation projects a value in 15 years of $104,000,000. Acquisition today at the minimum bid of $15,000,000 would provide a yield to maturity of 11.6% in the first case and 13.8% in the second case, more than triple the yield on investment grade 15 year zero coupon bonds. A yield table is available on request.
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