Case Studies

2520 Tilden Avenue, Brooklyn, NY

 

FINDING A BUYER WITH A HIGH TOLERANCE FOR RISK

 

Property: 2520 Tilden Avenue, Brooklyn, NY

 

Challenge: To get an investor comfortable with risk inherent in a lease that had a 30-day cancellation clause, which if terminated could cut the property’s value in half.

 

Story: The subject property is a 9-story elevator building containing 117 apartments and 86,000 square feet in size.  It presented an unusual situation in that the entire building was net leased to a city agency that provides transitional housing.  By spending a great deal of time on the phone with DHS, DOS, HPD, and other government and private organizations, our team became very knowledgeable about the risks and issues at play.

 

Results: We were able to identify a newly formed real estate investment trust (REIT) that was a good fit for this deal.  We orchestrated a complicated structure between ownership and the REIT which was necessary to facilitate a $22,900,000 transaction.

 

Involved: