9e38 9 E 38th St

JLL has been retained on an exclusive basis to arrange for the sale of 9 East 38th Street (“The Property”), an incredible 12-story commercial office building located on the north side of East 38th Street between 5th and Madison Avenues in Midtown South. Built in 1924 and completely modernized / renovated between 2017-2021, the 63,659 sf building is situated just east of Fifth Avenue in one of the most desirable commercial districts in Manhattan. The building will be delivered partially vacant, potentially allowing for a user to immediately occupy the space and take advantage of the rights of ownership. Furthermore, given the existing tenancy and stable in-place cash flow, the asset also presents an opportunity for an investor to lease up the remaining vacancy and capitalize on the reviving office market.
Currently, the ground floor and basement space are occupied by Japas NY, a popular karaoke and sushi establishment that has been in business for 13 successful years. Their current lease is not set to expire until October of 2028, providing future ownership with a stable ground floor commercial tenant. Of the remaining 11 floors, 5 are currently leased to established tenants including HSBC and Maxwell Kates Inc. The average floorplate is approximately 5,200 RSF, accommodating a myriad of boutique office tenants. The Property is positioned to benefit immensely from the significant capital expenditures that were recently invested by the current ownership group. Totaling over $9 million, improvements to the building’s lobby, restrooms, elevators, mechanical systems, and windows have considerably enhanced the quality of the asset. As a result, potential user buyers will have the advantage of the valuable cost savings associated with the completed work, while investors will be able to achieve top of the market rents for the five vacant floors.
9 East 38th Street presents a truly unique opportunity due to its favorable Midtown East location and proximity to many of New York City’s main attractions. The property is only 4 blocks south of Grand Central Station and only a 15 minute walk to Penn Station, allowing incredible ease of access to NYC’s 2 largest transportation hubs. In addition, the 4,5,6,7,E,B,D,F,M,N,Q,R, and W subway lines are all within a 10 minute walk or less further enhancing accessibility throughout the rest of Manhattan. Additionally, the property is only a 3 minute walk from famous Bryant Park, the popular greenspace that sees roughly 12 million visitors a year for various concerts, shopping, eating and cultural events.