A luxury Manhattan mixed-use rental property with entirely market-rate apartments has been listed for sale — a rare offering — as New York’s rents reach new highs.
The 57-story property, named Aalto57, is a 169-unit rental property at 1065 Second Ave. that spans a full block between East 56th and 57th streets, according to marketing materials from JLL, which is overseeing the sale. Built in 2016, the property also includes 66,513 square feet of large-format retail space.
The offering comprises the lower portion of the tower, while the upper floors contain a separate residential condominium at 252 E. 57th that is not part of the sale.
JLL billed the listing as an “extremely rare opportunity to acquire a newer-vintage, 100% fair market mixed-use” property with a tax abatement that provides “significant tax savings” through May 2035. The market-rate apartments are 98% occupied.
According to CoStar data, Aalto57 is one of a limited number of post-2016, fully market-rate rental apartment buildings with at least 150 units currently for sale, and the only such property in midtown Manhattan.
Oxford bought the property, co-developed by World Wide Group, for about $280 million in 2018, according to media reports at the time.
JLL and Oxford, which lists Aalto57 as its only residential property in Manhattan, didn’t immediately respond to CoStar News’ separate requests for comments.
The sale comes as asking rents in Manhattan reach new record highs, led by demand in neighborhoods such as Midtown East, where the tower stands. The market asking rent per unit at Aalto57 averages $6,908, well above the cluster’s record-high average of about $5,100 and the citywide average of $3,626, according to CoStar data.
“Midtown East stands out as one of the most supply‑constrained apartment submarkets in New York, shaped by a long history of limited development and consistently firm renter demand,” according to a CoStar market analysis.
The sale listing also coincides with mounting pressure on rent-stabilized buildings, which have faced growing financial strain. Proposals to freeze rents on those types of units have further weighed on investor sentiment toward regulated housing stock, according to industry professionals.
The building’s retail space is 95% leased, including longtime anchor Whole Foods Market, which still has over 11 years remaining on its lease, according to marketing materials.
For the record
The JLL Capital Markets team handling the sale includes Senior Managing Directors Rob Hinckley and Jeffrey Julien, Managing Director Steven Rutman and Senior Managing Director Drew Isaacson.