571 – 578 Jefferson is RealT’s first offering in the great state of New York, and what an excellent offering it is! This healthy mixed-use brick building offers landlords a reliable, easy-to-manage property situated in a safe, working-class neighborhood. The expected yield of 10.26% is also exceptionally high for the area—this is not a typical New York yield!
Jefferson hosts one studio, seven one-room, three two-room, and one three-room apartments, along with two retail spaces on the ground floor. All are currently rented, and all will be brought up to Section 8 standards so that they can be rented under that program if and when current tenants leave. We anticipate an increase in yield as units are re-rented under Section 8.
Some of Jefferson’s components are nearing end-of-service, such as the boilers and roof. RealT has allocated a renovation reserve of $95,000 to update and improve the building’s components at the end of their service with the intention of improving the property in the process. This reserve is already included in the Asset Price above. We will be sharing more details about the renovation process as it goes, so stay tuned!