Challenge

The challenge in the closing of 237A 27th Street in Greenwood Heights, Brooklyn, was navigating a zoning issue that emerged in 2023. The M1-1 land, featuring 34’ x 100’ dimensions, was initially sold for $950,000, or $280 per BSF. The client, who had purchased the land in 2017 with plans for multiple single-family homes, encountered complications after selling one unit in 2021. The unforeseen zoning issue jeopardized the utilization of all air rights, impacting the property’s value. This presented the seller with the decision to either resolve the zoning problem independently or accept a reduced price, adding complexity to the transaction.

Strategy

The strategy employed to address the challenge involved proactive engagement with property owners, actively seeking out opportunities and establishing connections to navigate the complexities of the situation. By consistently speaking with over 200 owners weekly, Matthews™ agents identified a developer actively seeking their next project. A single phone call resulted in an offer matching the asking price of $1.3 million. Despite the emergence of the zoning issue, careful consideration with the client and attorney led to the decision that the revised price was competitive, taking into account the associated risks and time required to resolve the zoning issue. The strategy showcased adaptability in the face of unexpected challenges and a commitment to finding solutions that align with the client’s goals.

Results

The results of the transaction demonstrated successful navigation of challenges and the ability to secure a competitive deal despite unforeseen complications. The property, initially sold for $950,000, found a buyer at the revised price of $1.3 million, reflecting the strategic decision to accommodate the zoning issue’s impact. The quick identification of a developer through targeted owner engagement highlighted the effectiveness of Matthews™ agents’ approach in facilitating efficient transactions. For a more in-depth understanding of the intricacies, especially concerning the nuances of securing residential developers in the sale of M-zoned land, interested parties are encouraged to reach out.