Suburban Long Island Complex Flips after Successful Repositioning
Wall Street Journal reports: When it comes to selling commercial properties in less-visible suburban markets, occupancy rates trump nearly every everything else in cutting a deal. An article in the Wall Street Journal detailed the recent sale of the Business and Research Center in Garden City, NY to illustrate this simple suburban selling rule. The brutish six-level concrete buildings, constructed in the 1960s, are an eyesore to some and uniquely attractive to others. More important, however, the complex attracted the attention of bidders due to its high occupancy level and recent renovations.
Metropolitan Realty Associates purchased the property for just $7.4 million in 2005 as the market was approaching its peak; shortly thereafter its primary tenant vacated the space and Metropolitan took the opportunity to give the desolate property a facelift and reposition it as a multi-tenant business center, rather than a laboratory industrial space. After $15 million in renovations, Metropolitan was able to lease up the space and the property sold this year for $39.3 million – a handsome profit, proving flips involving properties purchased during the boom years do occur.
In explaining the sale, Real Capital Analytics Managing Director Dan Fasulo told the Journal that, “Investors active in suburban markets are almost singularly focused on well-leased assets.”
View the full article on Wall Street Journal: Suburban Long Island Complex Flips after Successful Repositioning
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Posted by: Nina Turner