Residential real estate in New York can be big business. This is seen time and time again in the high prices of both residential and commercial real estate transactions.
Former governor Eliot Spitzer is unloading some of his New York residential real estate portfolio, selling 144 units his family owns on the East Side. It is believed that the transaction could reach $145 million or more.
Spitzer's father built the Corinthian, an apartment tower, during the mid 1980s. Located at 330 E. 38th St., the 57-story building is one of the largest in Manhattan. With 863 units and a variety of unique features, it is a premier place to live in this part of the city.
Immediately after constructing the tower, most of the units were sold by Spitzer's family. However, due to a slow down in the real estate market during the 1980s, they decided to hold onto 144 units, using them as a source of rental income.
This is not the first real estate move for Spitzer as of late, as he also acquired a development site for $88 million last December. It is believed that proceeds from the sale of the 144 units at the Corinthian could be a way for him to obtain capital for future purchases.
There are many things a buyer could do with the apartments, including renting them out or selling them one by one. Along with this, there is opportunity to increase the value of each unit, such as through renovations.
This sort of real estate transaction will take a lot of money, but in the end both the buyer and seller will be happy.
Source: Crain's New York Business, "Eliot Spitzer puts $145M worth of apts. on the block" Daniel Geiger, Mar. 25, 2014