Navigating the real estate scene continues to be no small feat for NYC multifamily landlords. The increasing costs from additional regulations, high interest rates and higher operating expenses continue to tighten the bottom line. When it comes to selling, the market demands nothing short of exceptional property management to achieve an ‘A’ and attract multiple offers on cash-flowing properties. This includes diligent building upkeep and cleanliness, rapid tenant response, adherence to local laws, and proactive capital expenditure management.
Compared to the pre-HSTPA era transactions in 2019, today’s courts and regulatory agencies have left no room for error. Investors are conducting more thorough due diligence which has lengthened the sales cycle and often results in a price adjustment at the end of their review.
Meridian Investment Sales recently facilitated the sale of 356 West 48th St., a property that underwent a substantial rehabilitation. The owner maintained impeccable paperwork and ensured the building was in excellent condition, even completing repairs up until closing. This A+ free market building commanded a record price selling for $1,100+ per s/f. Additionally, we closed on the sale of 270 St. Nicholas Ave., a rent-stabilized property renovated in 1989. Despite its low average monthly rents below $1,000, its pristine condition and the buyer’s long-term investment outlook made this building an attractive purchase.
Currently, we are marketing a three-building portfolio in Jackson Heights at 35-30 81st St., 34-57 82nd St., and 82-15 35th Ave. These landmarked buildings, with 187 spacious and well-maintained units, have seen over $2 million invested in exterior façade work and improvements. Pride in ownership translates to pride in tenancy, as shown by these properties’ near-zero violations and close to 100% rent collections.
Ultimately, there are no shortcuts to achieving top dollar sales prices. Attentive, hands-on management is essential for getting an ‘A’ and securing a successful sale.
Shallini Mehra is a managing director at Meridian Investment Sales, New York, N.Y.