CHALLENGE

162-1. Court Street lies in the heart of Cobble Hill. Brooklyn. The buildings consist of 3 residential and 4 commercial units With significantly below-market rents and long leases. The buildings total 9.000 Square Feet and have been well maintained over the years. The owners had viewed these buildings as retirement income. However. as they progressed into retirement. they considered the significant benefits of exchanging into an investment offering reduced management intensity and increased yield.

ACTION

As ownership debated holding the asset versus performing a 1031 exchange. they consulted the Brownstone Brooklyn team at Nowak-r-Partners. With a history of navigating dozens of exchanges. the team mapped out the scenarios for the owners and brought specialists to the discussion. The owners decided to perform an exchange to generate significantly more retirement income and avoid future management headaches. They hired Nowaki-Partners to market their property and quarterback their exchange.

RESULT

Nowak+Partners orchestrated a comprehensive marketing campaign for 162-164 Co. St.. designed to expose the asset to every possible buyer in the market.

• 20 written offers were presented during the process, after several rounds of bidding, an all-cash hard-contract was signed.                                                                                               
• The purchase price, S8,000,000, translates to $889 Per Square Foot, in line with the highest prices negotiated on this corridor two years earlier when mixed-use prices were stronger

• A cap rate of 3.45% 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 significant competition created by Nowak+Partners.