CHALLENGE

The owner of the frame three-family building at 218 20th Street faced the challenge of having to sell a run-down asset encumbered by multiple violations. The outstanding fines and deferred building maintenance made it impossible for him to achieve a reasonable each flow or sale to income investors at a price representing full market value for the building.

ACTION

After consulting Nowak+Partners the owner left that in spite of the building's poor condition the underlying zoning lot offered 5.000 square feet of buildable air rights. making the site a viable development opportunity. After discovering how the property was worth more based on its development potential. the owner exclusively retained Nowak+Partners to market the site and directly engage the local development market.

RESULT

After an extensive marketing campaign resulting in seventeen competitive bids. the team was able to negotiate a non-contingent contract of sale with an all-cash buyer at 51.425.000 - the equivalent of 5285 per buildable square foot. As a result. the seller was able to dispose of the property at a premium and within only 90 days from a contract being signed.

• Selling Price: S1,425,000
• Lot Sim: 25 Feet x 100 Feet
• Buildable Square F.: 5,000
• Price Per Buildable SF: 5285.00
• Contract signed with no buyer contingencies and an all-cash closing within 90 days
• Seventeen written offers from pm-vetted locally active developers
• The selling price of $285 per buildable square foot significantly exceeded local sales averages for similar sites