E 18th St. Apartment Building Sells For Over Eight Times 2006 Price

A 1926 apartment building at 220 E 18th St. recently sold for $9,050,990, a leap from both its 2005 and 2006 selling prices. The 100-unit, 63,000 square foot property was previously sold in 2005 for $6,600,000–but in just under a year, changed hands again for only $1,100,000.

This isn’t the first large multi-family building in the area to sell for a lot more than its 2006 price recently. 1834 Caton Ave., an 83-unit building just a few blocks over from 220 E 18th, sold in late March for $11 million ($3.8 million over its previous selling price).

220 East 18 Realty LLC and Queens Plaza Associates Trust, who swooped in to buy 220 E 18th for 1/6 of its previous price in 2006, certainly made their investment back. Now the question is, what are new owners Drenis Enterprises hoping to get out of their pretty penny?

The maintenance staff we spoke to at the building said while former owners let the building fall into disrepair, the new buyers have installed security cameras, cleaned the backyard for recreation, and are repairing brick and concrete at the front of the property–and that they don’t expect current tenants to be pushed out. Is it possible investors would put over $9 million plus upgrade costs into a property without the aim of bringing in a new demographic? If you live in the building, are you pleased or worried by recent developments?