Lower East Side: NYM Team Sources New Capital in $61,500,000 Sale
Lower East Side: NYM Team Sources New Capital in $61,500,000 Sale
9/21/2017
To be a successful seller in this market you need the right broker, using the right process, who provides accurate pricing guidance. For example consider our recent sale of a building called the Jones l.e.s. This story is timely given today’s phase of the real estate cycle. In a flat market, investors cannot make mistakes. That is why you work with a specialist.
THE BACKGROUND & OBJECTIVE
“Peter, Joe, and the rest of their team proved to be the experts in their space as advertised. They were competent, professional, and sold the building in the price range they promised. I would describe it as true value added brokerage.”
– Jon, former owner of Jones l.e.s
THE CHALLENGES
The property had two big challenges. The first was that the property was in pristine condition with market rate rents. Many buyers prefer properties in which they can find or create additional value through rental upside.
Challenge number two was the 20-year 421-a tax abatement. With this tax abatement program, the new owner does not know what the phased-in taxes will be at the expiration, providing a degree of risk that could make a purchase decision difficult.
THE SOLUTION
The seller chose our team because of our mid-market specialization, ability to reach both private and smaller institutional capital sources, and geographic focus. With some creative marketing to address the concerns about value and the 421-a, we were able to find a buyer in a 1031 exchange.
More importantly, we were able to bring someone new to the table: a buyer who had never purchased on the Lower East Side. Our team and extensive network specializes in bringing new capital to opportunities. When the left hand knows what the right hand is doing, as is the case with the NYM team, it is not difficult to create a market of competitive bidders. Our buyer closed the sale for $61.5 million, slightly lower than our asking price of $65 million.
If you are interested in learning how you can be our next success story, or are interested in the potential value of your asset, contact me to discuss.

Buy Peter's Book Today! Available on Amazon.
Catch up on our most recent posts here:
2023: Unknowns, Questions & Predictions For the Year Ahead
2022 finished much slower than it started with Q4 bringing a lot of uncertainty and trepidation to the market. Brokers woke up every Monday morning not knowing which deals would sign and close and which deals would fall apart. Calling a buyer on a Monday was like calling the doctor for your test results – you knew you had to do it, but you were nervous with what they might say. But alas, 2022 is in our rearview mirror it’s time to look at 2023 and make some predictions with where our business is headed.
read moreCompliance And The Future Of New York City Real Estate
Future values in New York will not be tied only to interest rates and rent stabilization. There’s another piece to the pricing puzzle that doesn’t have to do with upside in rents, NOI, rising expenses, or location. It’s compliance.
read moreNYC Multifamily Q4: The Changing Relationship Between Banks & Borrowers & Government
In this article I’ll go over how New York multifamily investors are navigating challenges presented to them by lenders, the federal government, and local bureaucracies.
read more
0 Comments