The 700 Ocean Ave. building offered the buyer, a local aggressive investor who also owns a nearby property, tremendous upside potential, according to a prepared statement. Michael Kerwin, senior broker at GFI Realty Services, represented both the buyer and the seller in this transaction. Kerwin tells GlobeSt.com that he cannot disclose the buyer or seller at this time; however he did note that the reason for selling was because the buyer made an offer the seller could not refuse. "The price we got was the asking price," he says. "He outbid three other buyers for the property."
Kerwin says that "this transaction is a perfect example of deals still happening in this volatile market. The opportunities like 700 Ocean are out there, they just need to be executed in a different way." The buyer purchased 700 Ocean Ave. at 11.2 times the rent roll, $113,000 dollars per unit and plans to add significant renovations to help increase the overall value, Kerwin explains.
The property in Elmhurst was sold to a long-time Queens investor who was looking to add to his portfolio. Yosef Katz, a senior broker at GFI who represented both the buyer and seller, tells GlobeSt.com that although he cannot disclose the buyer or seller, the reasoning behind selling was part of a reverse 1031 exchange.
The investor recognized the six-story, 67-unit residential property as an opportunistic purchase, according to Katz. "This deal was on the market for a while," he says, adding that it was on the market for three months. "After we presented it to our buyer in a different light we were able to achieve the purchase price," he says. "He intends to keep the property as a rental and use his market knowledge to increase the income." Katz says that the paid price was 10% above market value. The property features an indoor parking garage available for rental to building tenants.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
