Win-Win-Win. Seller, Flipper & Buyer. LichtensteinRE Just Sold and Resold a Brand New Renovated Multifamily Property in Yonkers, Westchester for $999,000 Cash.
Andrew Lichtenstein, President of LichtensteinRE, has just successfully sold and resold the property located at 56 Groshon Avenue in Yonkers, Westchester, for $999,000 all cash negotiating the price down from the original asking price of $1,175,000.
This Yonkers property is a completely renovated 5,200 residential square foot three story walk-up wood frame apartment building with Six (3.5 to 4) bedroom residential apartments plus large basement with seven storage spaces. Each tenant pays all utilities, including heat. The building contains 6 separately metered hot water heaters, 6 boilers and 7 electric meters making this investment a virtual net leased property.
Andrew Lichtenstein successfully closed the deal twice on the same day, but this was not the first time he had sold this property. Andrew sold the building three consecutive times in four years.
Andrew had previously sold the building in 2014. That year the property was in contract to be sold for $650,000 but a fire severely damaged the top floor and the fire department’s fire hoses damaged the rest, resulting in the evacuation and vacancy of the entire building. This derailed the sale and prevented the closing of that sale. Even before this accident, the property was in bad shape and rents were low. The Gross Annual Income was just $95,928. The owner at the time, Adar & Family, Inc. did not fix the property after the fire.
In 2015, Andrew Lichtenstein again exclusively marketed the property for his owner, selling it to Wall Home Improvement LLC for $400,000. Andrew Lichtenstein negotiated for his buyer the right to renovate and resell the property during the contract. Wall Improvement renovated the entire building, installing new appliances and fixtures in all units as well as a brand new roof and obtained a new certificate of occupancy. The bureaucracy, inspections and delays to obtain the c of o frustrated the developer, seller and buyer. Andrew Lichtenstein was once again exclusively engaged to sell for Wall Improvement.
After finishing the renovations, Wall Improvement rented the residential units for an average of $2,200 a month, bringing a gross annual rental income to around $158,400. This was in excess of the pre-redevelopment projection of $157,200. Net Income after expenses are projected to be as high as $121,000 annually.
LichtensteinRE sold it for the third time finally for $999,000. This last sale price represented $166,667 per unit. A Gross Rent Multiplier of 6.3. A Price per Square Foot of $192 and a Cap Rate of 12%.
“This transaction required incredible fortitude and patience. It was a most challenging and frustrating road to success. From beginning to end, including the fire, it took us five years to complete this transaction successfully,” said Andrew Lichtenstein.
The property is located between Vark Street and Herriot Street, South Broadway and Riverdale Avenue in a low income but nice section of Yonkers. The property has amazing views of the Hudson River and scenic bluffs of the NJ Palisades National Park.
Tenants have access to public transportation. The building is located less than a mile of two different Metro North Train Stations; Ludlow and Yonkers stations. The train ride from Ludlow takes only 34 minutes to Grand Central Station in Midtown Manhattan. Tenants can also commute to the city taking the Westchester Bee Line bus and transferring to either the #1 Subway Train in the Van Cortlandt Park-242 Station in The Bronx or the MTA #9. The subway station is only 3 miles away from the building.
For drivers going to Manhattan or other boroughs, it has easy access to the Saw Mill Parkway and Henry Hudson Parkway. The property is only around 25 minutes by car from to West 42nd Street in Midtown Manhattan.
Yonkers is becoming the next hip town to live in New York. New downtown and waterfront buildings, attract young professionals looking for beautiful views and easy commute. The city of Yonkers has started a marketing campaign called “Generation Yonkers” as an innovative economic development initiative created to reposition Yonkers as the next great urban frontier.
Andrew Lichtenstein benefited the title seller, the developer contract vendor and the buyer. The property was marketed exclusively by Andrew Lichtenstein who was the sole source that procured the buyers as well. LichtensteinRE has been actively selling multifamily property and setting sales records for its clients in and around New York City and Westchester County.
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