The Sale of 164 6th Avenue, Park Slope, Brooklyn, NY

We are excited to announce the successful sale of 164 6th Avenue in Park Slope, Brooklyn. This was a 5-family townhouse which sold for $3,325,000. The building spans 3,760 square feet (20’ x 47’) over four stories plus a basement. The building is located in the Park Slope Historic District and was delivered vacant for $884 per square foot.

Seller Profile

The seller was an estate that had previously marketed the property, but never ended up transacting.

Developer Profile

The buyer was an experienced townhouse developer in Park Slope and Greater Downtown Brooklyn.

The Challenge

Vacant, value-add multifamily townhouses are one of the most desirable products to investors in Brooklyn, but this property was unique because it had been previously rent regulated, which gave uncertainty to rental developers. This site was also located in the Park Slope Historic District, which makes permitting difficult with Landmark Preservation Commission approvals.

Solution

To attract both end-users and value-add developers, we crafted clean and compelling marketing materials highlighting the ability to convert to a single-family, two-family, condominiums, or high-end rental units.

Key Strategies Implemented

Blanket Market

We knew going into this assignment that it would attract significant interest from investors, developers, buy-side brokers, and end-users. Our team created an expansive marketing campaign to target these groups through phone calls, emails, and mailers. Because the building was vacant, we were able to conduct large group tours, creating a sense of urgency and competition from all potential buyers.

Leverage Competition to Strengthen Terms

While multiple bids can drive up the price, in this market, the certainty of closing is equally crucial. We leveraged competition to guide buyers in tightening their terms. Because of this competition, we were able to select a buyer that was 10% higher than other parties with acceptable terms for the seller.

Engage Outside Brokers

We commit to owners when they engage us to sell their asset that we will cooperate with outside brokers and offer buy-side broker fees. Our team has a strong reputation with buy-side brokers, and we proactively reach out to those groups, especially when there is vacancy and potential for an owner-user.

Buyer Qualification

Understand the capital stack and ownership structure behind the bidders. Are there influential LPs? Are they looking at permanent or bridge debt? The face of the negotiation may be sincere on the surface, but do they have the means to execute without friction.

Outcome

These strategies resulted in the successful sale of 164 6th Avenue for $3,325,000 to a townhouse developer. Our backup buyers included single-family developers, condominium developers, and high-end rental developers. By leveraging competition and maintaining momentum, we executed a clean contract and achieved a smooth closing with the right buyer.

Contact Us

Please reach out to learn more about this transaction or to discuss how a ground lease could be the best solution for your property.