Long Island Investor Buys Soho Multifamily From Centurion for $58M

Why It Matters

The deal highlights sustained demand for high‑density, income‑producing real estate in Manhattan’s core, signaling confidence in long‑term rental fundamentals even as retail markets soften.

Key Takeaways

• $58M purchase price, 4.7% cap rate
• 75 units, 11 rent‑stabilized apartments
• Four commercial tenants include sushi restaurant
• Closed under 30 days for 1031 exchange
• Soho retail rents down 12% from pandemic peak

Pulse Analysis

Manhattan’s multifamily sector continues to attract out‑of‑state capital, and the recent acquisition of 68‑74 Thompson Street illustrates that trend. Investors like Soheil Khayyam are leveraging 1031 exchanges to redeploy gains into high‑density assets that promise stable cash flow. The building’s 4.7% cap rate aligns with recent pricing benchmarks for comparable Soho properties, suggesting that buyers are willing to pay a premium for location and asset quality. Moreover, the rapid, under‑30‑day closing demonstrates the efficiency of off‑market deals facilitated by seasoned brokers such as Marcus and Millichap.

Soho’s retail corridor, while still commanding some of the city’s highest asking rents, has experienced a 12% dip from its pre‑pandemic peak. This softening reflects broader shifts in consumer behavior and the lingering impact of e‑commerce, yet it has not deterred multifamily investors. The building’s four commercial units—ranging from a sushi omakase to a boutique coffee shop—provide diversified income streams that can offset modest retail rent declines. The presence of rent‑stabilized units also adds a layer of regulatory stability, ensuring a baseline occupancy rate in a market where demand for residential space remains robust.

Looking ahead, the transaction signals that capital will continue to flow into Manhattan’s core neighborhoods, where land scarcity and high demand support resilient valuations. Investors are likely to prioritize assets that combine strong residential occupancy with ancillary retail components, balancing risk across sectors. As long as the city’s population growth and employment prospects remain positive, multifamily properties in locations like Soho will remain a cornerstone of institutional and private‑equity portfolios, even as the retail side of the equation adjusts to post‑pandemic realities.