Brooklyn: Overcoming Loft Law Hurdles to Sell Building for $1,000,000 / Unit

3/18/2017

“I was fortunate to meet Shaun Riney and the New York Multifamily team who were extremely professional and diligent at every step of the process. After having been in the business since 1985, I have never experienced this level of competency, toughness, honesty and dedication through every twist and turn as was exemplified with this team.”

– Gina, former owner of 35 Claver Place

THE OBSTACLE

Inverso Warehousing Inc. had owned 35 Claver Place since 1985 and initially operated the property as a shipping and manufacturing warehouse. The owners converted the building to Artists in Residence Lofts in the early 2000s and ran the building as a live-work community up until closing. There was a significant loft law challenge figuring in utilizing 6,000 square feet of commercial storage space, as well as 2,000 + square foot lofts.

CREATIVITY + HUSTLE = SOLUTION

The New York Multifamily team was able to leverage its in-depth understanding of residential conversions and strong relationships with loft law attorneys in order to educate buyers and get them comfortable with an ||as-is where-is|| sale with no additional vacancies represented. Multiple loft law applications were filed during the marketing period but the New York Multifamily team was able to navigate seamlessly through the issues that arose and secure a buyer that performed every step of the way and purchased the asset for over $1,000,000 per unit.

Keep up-to-date with market commentary by following here!

CLICK HERE

← 3 Ways to Guide Foreign Investors in the NYC Market → Harlem: Steve Sold on 139th Street, Doubled his Cash Flow, and Reduced Management... How?

0 Comments

Submit a Comment Cancel reply

CONNECT WITH US

Buy Peter's Book Today! Available on Amazon.

Catch up on our most recent posts here:

5 Reasons to Purchase Repositioned Assets

The secret to long term investing is figuring out how to be active in every market. It’s all about having a “line in the water.” Today, most NYC multifamily investors have been pushed to seek higher yield, and sometimes more risk, in their investments.

This has kept pricing very competitive in the value-add segment of the NYC multifamily market, while pricing on repositioned and finished assets have softend since 2015. Some observers call this a “mispricing of risk.”

$104,135,000 in NYC Sales to Close Out Summer

While transaction numbers have generally been in NYC, the New York Multifamily team at Marcus & Millichap closed more than $100 million in sales in the back half of summer 2018.

With 18 closed sales this summer across Manhattan and the boroughs and another 22 in contract, it was an active summer.

The History & Workings of NYC Regulation

Home to some of most coveted real estate in the world, it is no surprise that living in New York City comes with a hefty price tag.

What if I were to tell you that there was a way to legally avoid paying market rent for an apartment in the Big Apple, would that be something you might be interested in?