LichtensteinRE Sold Walk-Up in Bay Ridge for Record 2.98% Cap Rate for Nonagenarian client who predates his 1928 building
Riverdale, New York. (May 10, 2015) Andrew Lichtenstein, President of LichtensteinRE, has sold the property located at 194 Gelston Avenue between 92nd and 94th Streets in the Bay Ridge section of Brooklyn, for $3,850,000 all cash.
LichtensteinRE was able to close the sale for the seller at a windfall of 2.98% Capitalized Rate of return on the current actual net income at closing. The sale price represented $238 per square foot and $190,000 per unit. The building sold for 14.72 times the actual current rent.
This Cap Rate is well below Brooklyn’s average of around 5.45% percent and this Gross Rent Multiplier is well above the Brooklyn’s average of 12.48. GRM. “This is an incredible achievement for the Bay Ridge area. This price raises the bar for buyers and competing brokers,” said Andrew Lichtenstein, President of LichtensteinRE and the seller’s exclusive broker.
The rare 55 foot wide building has 16,000 square feet, 4 story walk up apartment building containing 20 large prewar units. It is 87 years old and maintained in fine condition. 75% of the apartments have been renovated.
“The adorable nonagenarian owner told me that he was born before the building that was built in 1928. Despite the owner’s advanced age, my seller client was sharp as a tack, displayed incredible negotiating business savvy and has more spunk, vitality and energy than most people in their 20’s. The owner demanded the highest possible price but it had to be a quick sale. It was my pleasure to generate a meeting of the minds very quickly and relied on the owner’s attorney to close the sale thereafter,” said Andrew Lichtenstein.
The average monthly rent is $1,272 which is far below market for this neighborhood presenting a big upside potential for the buyer. As exclusive broker, LichtensteinRE was able to find a buyer who made his offer immediately, leaving other slower paced competing bidders disappointed, as he recognized the great value-add, upside potential of the current undervalued rent roll.
“The buyer, who owns multiple properties in the neighborhood and Manhattan is very excited about the opportunity of owning such a clean and well maintained building at this great location,” said Andrew Lichtenstein.
The building is located in Bay Ridge, Brooklyn on a quiet and beautiful block. At the same time, it is around the corner from the 5th Avenue shopping district, the R subway station and the local public school.
The property was marketed exclusively by Andrew Lichtenstein. LichtensteinRE has been actively selling multifamily property for its clients in and around New York City.
LichtensteinRE specializes in the exclusive sales of multifamily and mixed use commercial real estate properties in New York City’s 5 boroughs. LichtensteinRE is a full service Commercial Real Estate Sales, Financing and Advisory Service Boutique based in New York City, the financial capital of the world. LichtensteinRE’s proven experience, track record, financing ability, exclusive buyers and connections with tens of thousands of property owners assures their selling clients the best possible price when a landlord owner wants to sell their property.
DoctorMortgage, which is LichtensteinRE’s financing division, has been a leader in commercial real estate mortgage debt financing since 1991. DoctorMortgage is able to negotiate and facilitate financing to deliver the best price, leverage and return on investment possible.
LichtensteinRE’s greatest ability is creativity and problem solving. After selling the owner’s property, LichtensteinRE has assisted successful sellers in locating replacement 1031 tax deferred exchanges and in some cases has more than doubled the seller’s net income post-closing. To learn more contact Andrew Lichtenstein at (800) 242-9888 or AL@LichtensteinRE.com