As reported by Craine, New York University has made a significant investment of $69 million to acquire another property aimed at transforming it into dormitory space.
This site, noted for being one of the oldest federal-era homes in the area and previously supported for landmark designation by preservation advocates, was originally bought by Sherwood and Bhatia in 2010 for $8.5 million through a limited liability company named after its location.
Following the purchase, Sherwood Equities and Bhatia Development, both well-known real estate companies based in Midtown, proceeded to demolish the historic building, paving the way for new dormitory construction on the lot located between East Fifth and East Sixth streets.
A long-term lease has been arranged with Marymount Manhattan College, a private institution on the Upper East Side,
although details regarding the financial terms of this lease, such as rental prices and occupancy rates for the student housing, have not been made public.
New York University stands out as a notably pricey institution, with annual educational expenses, including housing, soaring to around $90,000 for a single student.
The university is also recognized as one of the largest and most affluent property owners in New York City, benefiting from tax exemptions on its extensive real estate assets, much like other private colleges.
In a significant move in 2023, NYU captured attention by purchasing a Kips Bay apartment building for a staggering $210 million, marking one of the year’s most impactful real estate deals.
The total assessed value of NYU’s real estate holdings hovers around $1.8 billion, just shy of Columbia University’s portfolio; however, NYU faces taxation on only $120 million of this figure, leading to an impressive tax savings of nearly $1.7 billion, as reported by Crain’s.
This year has indeed been extraordinary for NYU in terms of expanding its property acquisitions.
In addition, the school is often regarded as a dream institution by many students due to its stunning beauty; however, there is considerable concern among them regarding whether the latest acquisition will result in additional fees for an already costly educational experience, making it one of a kind in the world.
Images: NYU on Instagram.
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