CHALLENGE

The owner of 2505 Pitkin Ave had leased the property to a City-chartered pre-school for many decades. As the lease neared a long-anticipated expiration. the owner intended to shift the property's equity into higher profit investments. As a result. he wanted to sell this asset. however, the expiring lease included a tenant's right of first refusal. The owner wanted to maximize sales value. but it was concerned that many buyers would shy away from making potentially fruitless bids.

ACTION

During their initial consultation. Nowak-i-Partners demonstrated a broad-reaching marketing strategy and the ability to solicit competitive bids in spite of a tenant's right of first refusal. In addition. the team showed the owner that the property's highest value would be realized by factoring in the value of new development rights that stemmed from East New York's recent up-zoning. Nowak+Partners was the only broker who clearly demonstrated how a buyer could capitalize on the value of these new air rights in addition to the value of the existing structure. Ate result. the team was retained to exclusively represent the seller in marketing the asset.

RESULT

After an extensive marketing campaign. Nowak+Partners introduced a number of competitive bids and negotiated a non-contingent contract with an all-cash buyer at the equivalent of 5230 per existing square foot - a local price record for the sale of a multi-story commercial building. In the end. the tenant did exercise their right of refusal. but was forced to match the competitive market place's highest offer. This offer was a record-setting price- a price which included a premium for the building's newly acquired air rights.

• Local area price record for the sale of a cold-story commercial building
• Sold without buyer contingencies at a selling price of S1,500,000 above other broker's initial estimates of value
• Multiple competitive bids in spite of an existing tenant right of first refusal
• Selling price reflective of both the existing building's value and the added value of newly acquired air rights from east new york's recent up-zoning.