Yonkers Office/Industrial Complex Is Put on the Market

YONKERS, NY-Marcus & Millichap Real Estate Investment Brokerage Co. has been named to market a pair of well-known industrial/office properties here. The Nepperhan Business Center, consisting of two industrial/office buildings, and Nepperhan Plaza, a stand-alone retail/office building, have been offered for sale as a package for $14 million with a 7.49% market capitalization rate, the brokerage firm states.

Ben Sgambati and James Dickerson, investment specialists in Marcus & Millichap’s New Jersey and Manhattan offices, respectively, were named the listing agents. Locally based Kappa Associates LLC (also known as Yonkers Industrial Development Corp.) is the seller. Veteran real estate investor Allan Eisenkraft is the owner of the Nepperhan Business Center and Nepperhan Retail Plaza. The Nepperhan Avenue properties are approximately 92% leased.

“After 48 years of being an owner/manager of real property, I think it is time I took it a little easier,” says the 68-year-old Eisenkraft. “After the sale I will continue in the real estate profession, but in mortgage financing, sales and leasing of commercial and industrial property.”

Sgambati of Marcus & Millichap comments, “These properties present an appealing investment opportunity on many levels. The multi-tenant environment provides minimized risk and stability of cash flow. Annual rent increases for the majority of the tenants, including those currently below market, provide upside potential and the area’s strong location ensures appeal to renters.” He adds that the Nepperhan buildings are a well-established resource for smaller space in Yonkers.

The Nepperhan properties are located at 525, 540 and 578 Nepperhan Ave. The Nepperhan Business Center was constructed circa 1900 and converted to multi-tenant use in the late 1970s. It totals 150,000 sf. The buildings are listed on the National Register of Historic Places. Fastenal Co. occupies 2,000 sf at the building and is negotiating for additional space, Eisenkraft says. Yonkers Raceway and the Hudson River Museum lease warehouse space at the property.

The retail plaza was constructed in the late 1980s and totals 15,000 sf. The largest retail tenant is a modern laundromat. New York State Office of Children and Family Services occupies more than 10,000 sf at the retail plaza.

Combined the buildings include 164,069 rentable sf on 2.2 acres of land. The property is located in both a New York State Empire Development Zone and a Federal Empowerment Zone.