NEW YORK—A portfolio of 11 Citibank retail branch locations in the New York metro area will be marketed for sale by Newmark Grubb Knight Frank Capital Group. The Capital Group team of Kenneth L. Zakin, Randall E. Liberman and Hymie M. Dweck is orchestrating this offering of net-leased properties at fixed prices.
Priced from $1.5 million to more than $7 million, the properties each have 10 years of term remaining on existing Citibank net, with a 3 percent cap on annual CPI rent increases. A portion of the space at three of the 11 properties is leased to third-party tenants not affiliated with Citibank.
The New York properties include two in the Bronx, 241-85 Creston Avenue and 1261 Castle Hill Avenue; three in Brooklyn, 80 Jamaica Avenue, 1501 Kings Highway and 1455 Myrtle Avenue; two in Nassau County, 199 Second Street in Mineola and 4881 Merrick Road in Massapequa; three in Queens, 121-11 Liberty Avenue, 80-19 Roosevelt Avenue and 217-02 Jamaica Avenue; and one in Westchester County, 711 Boston Post Road in Mamaroneck.
The Citibank branches in the portfolio have an average deposit base of $200 million. The Roosevelt Avenue branch in Queens has a $418 million deposit base.
“Some of the strongappetite for the offering is a result of rising demand for IRC §1031exchanges,” according to Zakin.
In such transactions, the seller of one property is eligible for capital gains tax deferrals if another property is purchased within a set period of time.