Parking Garage beneath residential high-rise building

Description:

The Garage at 325 Fifth Avenue (“Property”) offers a rare opportunity to acquire a large-format, below-grade parking condominium in the heart of Midtown South, immediately proximate to Fifth Avenue, Koreatown, Herald Square, Penn Station, and the Empire State Building. The Property is situated beneath a 41-story luxury residential tower containing 250 units, high-end amenities, and multiple ground-floor retail tenants—providing a consistent, built-in demand base and prime positioning within one of Manhattan’s most active mixed-use corridors.
The garage encompasses approximately 31,190 square feet across two below-grade levels. The Property is currently leased to and operated by GGMC through October 2031, with no renewal options. This structure provides an incoming investor or operator with the ability to collect near-term contractual income and achieve full operational control at lease expiration, without long-term lease encumbrance, creating an attractive combination of immediate cash flow and strategic flexibility. There is a 6 month cancellation clause for the landlord. Perfect opportunity for a user or investor to put in a new operator at much higher rent. Present tenant has been there for 17 years and was paying $1.2M per year as of last year. The garage was purchased in 2017 for $14M.
Present rent is below market value. There is currently a $5.2M mortgage on the property at 8% interest only with 5 years remaining which is assumable.
Major Value Add for the property

31,190 Square Feet
Taxes: $250,000
Condo Charges: $132,000
Insurance: $18,000 annually
Rent: $900,000 annually
5 Years left on the lease
3% Increase each year
NOI: $500,000 plus $20,000 in tax contributions from tenant
Total NOI: $520,000
Block & Lot#: 0862-1202
Tenant: GGMC

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