Easy Money Reno
The redevelopment of 247 East 28th is everywhere today.  It's in the Full Story below, it's here and here and probably a few other places too.  Rightfully so! It's a simple story of an underperforming asset that is about to be repositioned for solid returns.  As the Full Story below notes, 247 East 28th has been picked up by Silverstone Property Group and RWN Real Estate Partners for $53M, with plans to sink another $12M in upgrades.  Over 128 units and 109kSF, our back of the napkin math tells us that is $507k/unit and $596/sf, which isn't cheap at a first look.
But, the current average rent of $40/sf provides a gross rent multiple of somewhere around 17.  If Silverstone successfully repositions the building into their target 'luxury' market (and let's take the broker speak with a grain of salt), there is no reason they can't realize $45/sf like Kips Bay Court Across the street, or $55/sf like Parc East, one block down.
$55/sf would give Silverstone and RWN a GRM in the neighborhood of 12, beating current rates by 2 points.
Nice investment + nice reposition = easy money.

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