CHALLENGE

Court Street meets Atlantic Ave on one of the busiest intersections in Brooklyn. It's a hub of activity where commerce, high-end residential, and busy retail converge. Trader Joes. Rite Aid and Santander Bank operate some of their top locations on this comer. 141 Co. The street is a 2.800 square foot mixed-use property located one building off of the comer. The property's owner had acquired the property in the mid-1990s, long before the neighborhood became what it is today. In recent years, the owner encountered financial challenges that made her unable to make ban payments. and in late 2016 she faced a mortgage default and a potential foreclosure auction. With an attract, ve properly and a very visible legal studio, the owner was swamped with buyers. All of them came with the all-loo-familiar low-ball pricing and credibility issues. The owner desperately needed to find an honest team that could quickly create a competitive marketplace to showcase this valuable asset and negotiate a competi. sale. Above all, the owner needed to move swiftly to avoid losing everything in a court auction.

ACTION

The owner of 141 Co. Street recognized the need to quickly generate a competitive marketplace so they hired Jakub Nowak. Matt Rosenzweig. Jesse Kay and their team. Nowak+Partners at Marcus & Millichap. Having developed a longstanding relationship with Mr. Rosenzweig and Mr. Kay the owner knew she could rely on Nowak+Partners to delver outstanding exposure for the property. The team first helped the owner hire the most qualified attorney for the job. Subsequently, within the first week of launching the listing. Nowak +Partners sent the informational setup to over 10.000 local and national investors. Because the property was perceived as a distressing situation. a top price would only be the outgrowth of a controlled and competitive bidding environment generated by Nowak+Partners.

RESULT

Upon being retailed to market 141 Court St., Nowak+Partners orchestrated a comprehensive marketing campaign designed to expose the asset to every possible buyer it the market and to draw signific. companion around the asset. The team generated 17 written offers within the first weeks of marketing and ultimately secured an all-cash deal far above.

• 17 written offers were presented in the first four weeks. Eleven were from 1031 exchange buyers
• After several rounds of bidding, an all-cash hard-contract was signed with a 3-day closing sufficiently fast to avoid a court-mandated auction
• The purchase price, $3,825,000 translates to $1,366 per SF, in line with the highest prices negotiated on this corridor two years earlier, when mixed-use prices were stronger
• A cap rate of 4.42% was achieved for a retail asset with minimal near term upside
• The final purchase price was substantially higher than the initial offer from the buyer due to the increased competition for the asset, and the significant competition created bu Nowak+Partners