418 North Division Street, Peekskill, Westchester County, New York

We are pleased to announce the closing of 418 North Division Street, a development site located in the Westchester County town of Peekskill, NY. Previously the site of White Plains Linen, the property spans 42,684 square feet of land with 700 feet of corner-to-corner wraparound frontage. The site was rezoned for residential use, allowing for a massing of 4-6 stories, depending on the developer’s preference to include affordable housing bonuses. The transaction was executed utilizing Crexi’s Auction Services platform, achieving a final sales price of $3,650,000—or $85 per land square foot. Based on our estimates, this equates to approximately $30,000 per approved unit on baseline massing.

Seller Profile

The seller, a Brooklyn-based developer, acquired the asset in a distressed state. They worked with the city of Peekskill to establish defined zoning for the site and then opted to sell to a developer with more suburban development experience.

Buyer Profile

The buyer is a generational developer operating in Westchester and The Bronx, with over 1,000 units under management. Their focus is on high-quality affordable housing, and they are well-capitalized to execute this project.

The Challenge

The site had been on the market for over a year. While there was interest, lengthy due diligence processes and contingencies caused momentum to stall. Marketing efforts began to lose traction as brokers an buyers worked through the complexities of suburban development. Complicating matters further, the seller faced an approaching loan maturity, necessitating a clear and actionable strategy with a firm timeline.

The Solution

We implemented a digital auction process hosted and marketed by Crexi, a leading name in commercial real estate. Crexi functions as a commercial real estate clearinghouse, with the technology and expertise to conduct virtual property auctions. These auctions streamline the buyer funnel through a structured due diligence process, culminating in a two-day auction and the execution of a hard contract with predetermined terms.

How We Implement an Auction Strategy

Success in an auction process starts with assembling the right team. It requires a balanced collaboration of brokers, auction specialists, and attorneys to secure a market-priced sale. Paired with a secure and user-friendly auction platform, this ensures qualified buyers are ready and eager to participate.

Upfront Due Diligence

Presenting detailed information upfront is critical to setting expectations and building buyer confidence. While no seller can provide everything a buyer might request, presenting key details ensures the dialogue is focused and allows for an “as-is” contract, avoiding delays in the due diligence phase.

Maximized Exposure with Engagement

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. Despite having several buyers within the same price range, one buyer stood out due to their favorable terms and execution history.

Auction Day Dynamics

Auction day creates unmatched excitement. By setting a reasonable reserve price, sellers maintain control over their bottom line. If the reserve price isn’t met, the seller is not obligated to proceed. Sellers can also participate in the auction up to the reserve price, stimulating bidding activity. Once the reserve is met, buyers are notified, solidifying that the property will transact that day. The competitive nature of the process encourages buyers to put forth their strongest offers.

Streamlined Closing Process

Once a buyer is awarded the contact, their initial deposit is released, they have 24 hours to fund the remaining hard deposit. With all due diligence completed beforehand, there’s no lengthy back-and-forth between attorneys. Buyers can request closing periods in advance, but the timeline is traditionally set at 45 days. The entire process—marketing, auction, and closing—typically takes three months.

Outcome

This approach led to the successful sale of 418 North Division Street for $3,650,000 to a private yet active developer in Westchester. We launched marketing in August, held the auction in September, and closed the transaction in November. The seller met their obligations to their lender and has engaged us to auction additional properties in their portfolio.