Two mixed-use properties, situated one block from each other, were held in an estate. Despite their ideal location in the rapidly developing neighborhood of Ridgewood, their sale faced a particular challenge.
The executor of the estate could not act independently, as he was accountable to multiple family members who held conflicting perspectives regarding the handling of the properties. For the sake of simplicity, they desired to sell the properties as a single package. The executor lives out of town and is neither familiar with the neighborhood nor its local market, and did not know how best to proceed, much less negotiate with the relevant parties.
Taking a referral from his lawyer, the executor contacted Swain Weiner at Greiner-Maltz Investment Properties. After targeted research on comparable sales in the area, Weiner executed appropriate asking prices for each property that would both push the market in the favor of his client and maintain the ability to attract prospective buyers.
Tailored marketing strategies were implemented for both properties as each was introduced to the market. Weiner made personal phone calls to owners in the area who held similar properties, and oversaw an effort that distributed postcard advertisements via direct mail, and sent listings via email. The market for potential buyers was completely covered.
Not only were the properties sold simultaneously and within an efficient time period, but they also sparked bidding wars. Each resulted in separate buyers purchasing the properties at their full asking price, closing at only 60 and 40 days’ due diligence respectively. The final purchasing price for one of the properties set a new record in the area, selling at 31 times the rent roll.
Its impressively low capitalization rate—coming in at 2.7 percent—is similar to what is seen in Manhattan. The other property’s full asking price was met at 14 times the rent roll, representing a 5.5 capitalization rate (a rate that is still quite low for the area).
With the two properties yielding an optimized purchasing price far above the sales price of a package deal, Weiner not only effectively served the interests of the estate, but far exceeded their expectations.
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