New York Multifamily Team Uses Extensive Network to Quietly Close $37 Million Tribeca Asset
With a Pulse on the Market Team Locates Motivated Foreign Equity
10/3/2019
Many buildings in Manhattan’s Tribeca neighborhood have been converted to condos in recent years, which has decreased the supply of rental units on this popular part of the island. But that’s not the case for 186 Franklin St. This 50-foot wide elevator building houses six residential rental units and one retail unit, and its immaculate condition makes it a rarity in the coveted neighborhood.
In order to successfully sell this building, the owner of 186 Franklin St. needed to work with a real estate team that had connections with buyers who could pay the high price for a property like this one. That’s why they went with New York Multifamily.
Our team closed on this Manhattan building in May 2019 for $37.4 million. Here’s how both the buyer and seller found what they were looking for.
Ready for a Change After 20 Years
The seller had owned 186 Franklin St. since 1999. Managing the building was becoming harder and harder, and he was ready to move into a different asset class. The seller wanted to increase their cash flow with a new asset but spend less time doing day-to-day management.
This building was appealing to buyers because of the number of rental units and because it belonged to a tax class that limits how much the city can raise taxes on the property. The owner had also done some upgrades (all the way down to the finishes!) in some of the units, which also made it a more desirable purchase.
The seller wanted this deal done under the radar, and because the New York Multifamily team has experience working with sellers who prefer to keep transactions on the down-low, we were able to pull this deal off quietly.
The Challenge of Finding the Right Buyer
To successfully complete this deal, New York Multifamily needed to find a buyer with the right equity for a sale like this one. Foreign equity is a hot commodity today. Many sellers are searching for foreign buyers for their New York City assets, but they run into roadblocks because they don’t have connections with those types of buyers.
New York Multifamily has those connections. It’s crucial for real estate teams to be hands-on and to be constantly managing relationships with all types of buyers and sellers in order to make the right match for each and every deal. The New York Multifamily Team was able to connect the dots within their large network and find the right foreign buyer for 186 Franklin St.
Another challenge was finding someone who would be flexible with the seller’s terms. Because the seller was completing a 1031 exchange, he needed the buyer to accommodate his closing date.
Closing the Deal
The sale of this building set a record of price-per-square-foot for buildings like this one. The New York Multifamily team was able to find the right buyer who was willing to pay top dollar and was also able to assist the seller in completing a 1031 tax-deferred exchange. Now, the seller has more time for his personal life and has also increased his cash flow.
For the buyer, the team delivered a product that rarely exists in this market, given the condition and location of the building.
Interested in learning more about this deal or how we can help you enjoy maximum return on your investment in a multifamily property? Contact us today or call 212.430.5114.
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