Successful Sale of 325 Exterior Street in Mott Haven, Bronx
Bob Knakal and his team closed the sale of the development site at 325 Exterior Street in Mott Haven, Bronx, for $74,700,000. Strategic marketing and competitive bidding pushed the property’s price to the top of the market, even when the initial offer came from the property's tenant. By creating a competitive process, Bob helped the seller secure a record price for the area.
Sale Details
The sale of 325 Exterior Street closed on December 21, 2021, for $74,700,000, setting a new record price for the area. The tenant ultimately won the bidding war and purchased the property, but only after being pushed to the top of the market through a competitive process.
Sale Price: $74,700,000
Seller: Lightstone Group
Buyer: Tenant (Confidential)
Seller Type: Private Owner
Property Type: Development Site
Sale Date: December 21,2021
Property Details
325 Exterior Street is a prime development site located in Mott Haven, Bronx, offering tremendous potential for future development.
The tenant occupying the site initially approached the owner to purchase the fee position, but the seller wanted to ensure that they were getting the best possible price for their asset.
Full Address: 325 Exterior Street, Mott Haven, Bronx, NY
Zoning: Development
Property Type: Development Site
Sale Price: $74,700,000
The Challenge: Ensuring the Best Price in a Competitive Market
The key challenge for this transaction was determining whether the tenant's offer represented the true market value of the site. The initial offer from the tenant was $63 million, but the seller was unsure if that was the highest price they could achieve.
Bob Knakal and his team proposed a strategic approach to maximize the site’s value. Rather than simply accepting the tenant’s offer, they recommended putting the site on the market to generate competitive offers.
This method would ensure that the seller could compare multiple bids and have confidence in securing the top price.
Strategic Marketing and Competitive Bidding
Bob’s team launched a comprehensive marketing campaign targeting local and national developers. As anticipated, the site generated significant interest, and multiple offers came in well above the initial $63 million offer.
The competitive nature of the bidding process forced the tenant, who was leasing the site, to increase their offer in order to secure the purchase.
By allowing the market to determine the site’s value, the seller was able to close at $74,700,000—more than $11 million above the tenant's original offer. This outcome highlights Bob Knakal’s expertise in maximizing sale prices through thoughtful marketing and competitive bidding.
Neighborhood Overview
Mott Haven, located in the Bronx, has become a prime area for development.
Key drivers of interest:
- Proximity to Manhattan.
- Growing interest from developers.
Sale of 325 Exterior Street:
- Reflects the strength of the Mott Haven market.
- Achieved record-breaking prices through competitive bidding.
Continued demand:
- Developers recognize the neighborhood's potential.
- Demand for development sites remains robust.
Conclusion
The sale of 325 Exterior Street is a perfect example of how competitive bidding and strategic marketing can lead to record-breaking prices. Bob Knakal’s approach ensured that the seller secured the top price for their property, even when the initial offer came from a tenant.
This deal showcases Bob’s expertise in maximizing client value and underscores the significance of harnessing market competition.
Testimonial
Here is what the seller had to say about the transaction:
“When our tenant first approached us about potentially acquiring the property in an off-market situation, we initially had planned to negotiate with them directly given our past history. However, after working with Bob, Jon, and Karl on a similar transaction in the immediate neighborhood, we realized that their knowledge of the development market and experience with these types of purchasers could be incredibly helpful to our negotiations. As a result, we engaged them to exclusively represent us during the process and could not be happier with the results it produced for us as it was a new record price for the area. I would encourage anyone with a similar situation to do the same!”
– Meir Milgraum, Lightstone Group
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