- Bedrooms: 48
- Bathrooms: 48
- Parking: 24
- Size: 3806.79 m²
- Price: $33,000,000
Building for sale in the prime region of Flushing with 41 two-bedroom apartments, 6 one-bedroom apartments, and 1 studio. The Haru is a new ground-up construction, with 7 floors, located at 138-25 Barclay Avenue, Flushing. Completed in 2023, the building consists of 48 residential units, 24 on-site parking spaces, and totals approximately 3,806 m² on a plot of approximately 1,152 m². Currently, it is structured as a rental property, with a 421-a tax abatement in effect.
Revenue stabilization and growth are supported by neighborhood-scale investments, as it is situated in a privileged location. Located in the center of Flushing, just steps away are the 7 subway and the LIRR at Flushing-Main St, and destination retail, including Tangram, Sky View Parc/The Grand, and New World Mall. A few minutes away are Citifield at Mets - Willets Point and the future NYCFC stadium with 25,000 seats (forecast for 2027) and the Metropolitan Park entertainment/casino proposal (application submitted in 2025; awaiting state grant).
Financial Aspects:
The requested asking price for The Haru is $33,000,000. Based on the Offering Memorandum projections, the annual gross rental income is estimated at $1,944,960, and the annual parking income at $70,800, totaling a potential gross income of $2,015,760. Projected annual operating expenses are $224,259.12, resulting in a projected net operating income (NOI) of $1,791,500.88. Expenses include real estate taxes ($115,000), water and sewer ($60,000), insurance ($14,253.12), common area utilities ($30,000), and supplies and pest control ($5,000).
Market Context in Flushing, NY:
Flushing is a dynamic real estate market in New York. Recent trends indicate an increase in property sale prices, with the median sale price in Flushing around $713,000, an 8.9% increase from the previous year. The average price per square foot is $812, with a 5.7% increase. The region has seen population growth and strong demand for housing, driven by a diverse population, where 57% are foreign-born. The vacancy rate is low, and average rents for two-bedroom apartments range from $2,474 to $3,300, depending on the source and exact location. The Haru is strategically located in the center of Flushing, close to major transportation hubs such as the 7 subway and the LIRR at Flushing-Main St, as well as commercial and entertainment areas like Tangram, Sky View Parc/The Grand, and New World Mall. Future developments in the area, such as the future NYCFC stadium and the proposed Metropolitan Park (entertainment/casino), promise to further drive demand and appreciation in the region.
421-a Tax Abatement:
The 421-a tax abatement is a significant incentive for developers in New York, offering property tax exemptions for a period of 10 to 25 years in exchange for the construction of new residential housing. For The Haru, the 421-a tax abatement is in effect for 35 years, which significantly reduces operating costs and increases the profitability of the investment in the long term. It is important to note that, in some cases, owners of 421-a buildings may add an annual surcharge of 2.2% to the rent of some units during the abatement phase-out period.
Investment Considerations:
The Haru presents an attractive investment opportunity due to its prime location in Flushing, a market with strong demand and growth. The new construction, modern amenities, and the 421-a tax abatement contribute to a stable revenue potential and long-term growth. Proximity to public transportation and major commercial and entertainment centers reinforces the property's attractiveness to tenants. The structure as a rental property and the presence of the 421-a tax abatement are strong points for revenue stabilization and growth. However, as with any real estate investment, it is crucial to conduct thorough due diligence and consider ever-evolving market conditions.