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This 11 apartments and 2 stores located on a busy street in the Crown Heights. The whole building is rent stabilized other than one free market unit.

There is an assumable mortgage in the amount of $808,000 at 6.6% fixed until 08/3/2012

Very centrally located. In walking distance to Medgar Evers College, The Brooklyn Museum, Botanic Gardens, Prospect Park Zoo and much more.

Click here for listing details.

Neighborhoods: Crown Heights

A corner industrial site at 211-217 Cook Street located on the northwest corner of Cook Street and White Street in Brooklyn’s East Williamsburg neighborhood sold in an all cash transaction valued at $1,150,000.

This industrial site is made up of three steel and frame structures on one tax lot in East Williamsburg. The buildings have high ceilings and are ideal for an owner/user. The entire footprint of the lot is 10,000 square feet with a zoning designation of M1-2 which allows for approximately 20,000 buildable square feet of manufacturing space. The property is located five blocks away from the Morgan Avenue L train station

Neighborhoods: Williamsburg/ Agents: Mark Lively, Thomas Donovan

I’ve been selling investment properties in New York City for 25 years and have never seen anything like the low level of sales that the market experienced in the first quarter of 2009.

 

In order to know just how abysmal the volume of sales has been, let’s review a little history. In order to study volume of sales we track a sample of 125,000 properties which fall into the C, D, S & K classes of properties which include multifamily apartment buildings, retail and mixed-use properties. During the last 25 years, the average annual volume of sales has been 2.5% of this total stock of properties or about 3,125 sales per year. The best years we have seen were 1986 and 2006 with 3.4% turnover, 1988 with 3.5% and a pinnacle in 1998 at 3.9%.

 

On the other side of the coin, we experienced the lowest level of turnover in both 1992 and 2003 which were both years at the end of recessionary periods and were years in which we reached cyclical highs in New York City unemployment. The volume of sales in those years was 1.6%. We had always thought that this 1.6% level of turnover was a baseline representing only those sellers who had no choice but to sell due to reasons such as death, divorce, taxes, insolvency, partnership disputes and the like. Our assumption was that volume would never get lower than the 1.6% threshold. Enter 2009.

 

If we annualize the turnover the market experience in the first quarter of 2009, in which there were only 233 sales closed, the volume of sales would be only 0.7%!

 

We certainly do not expect this trend to continue to an annual level of 0.7% but it is very likely that we may not see enough activity to hit the 1.6% level....

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Agents: Robert Knakal

The subject property is a six-story vacant corner office building next to the Fulton Street subway station.

Click here for listing details.

Neighborhoods: Financial District/ Agents: Robert Knakal

Massey Knakal Realty Services has been retained to arrange the sale of the senior note collaterialized by a newly constructed condominium building in Williamsburg, Brooklyn.

Click here for listing details.

Neighborhoods: Williamsburg/ Agents: Mark Lively, Robert Knakal

Massey Knakal, In The News

5/22/2009 10:37:01 AM/ Massey Knakal/ News

CoStar and Real Estate Forum announced the 2008 Power Broker Awards in the May/June issue of Real Estate Forum. Massey Knakal has been ranked one of the top sales firms in Nassau County and New York City! In addition, Bob Knakal is one of the top ten sales brokers in the US!

Click here to see all 2008 CoStar Power Brokers.

Agents: Robert Knakal

Featured Listing: 410 Avenue M, Brooklyn, NY

5/21/2009 12:45:07 PM/ Massey Knakal/ Listings

A two story + Basement mixed property on the Avenue M retail corridor located mid block between East 4th and East 5th Street.

Click here for listing details.

Neighborhoods: Flatbush

I’ve been selling investment properties in New York City for 25 years and have never seen anything like the low level of sales that the market experienced in the first quarter of 2009.

In order to know just how abysmal the volume of sales has been, let’s review a little history. In order to study volume of sales we track a sample of 125,000 properties which fall into the C, D, S & K classes of properties which include multifamily apartment buildings, retail and mixed-use properties. During the last 25 years, the average volume of sales has been 2.5% of this total stock of properties or about 3,125 sales per year. The best years we have seen were 1986 and 2006 with 3.4% turnover, 1988 with 3.5% and a pinnacle in 1998 at 3.9%.

Click here for full article.

Agents: Robert Knakal

A corner brick walk-up apartment building at 143-28 Cherry Avenue located on the corner of Cherry Avenue and Smart Street in the heart of Flushing, Queens sold in an all cash transaction valued at $1,825,000.

The four-story, 12,915 square foot building, consists of 16 one-bedroom apartments and four studios; 19 of which are rent stabilized units and one rent control unit. The building has No. 2 oil with a full basement, a newer roof and updated electric with circuit breakers. The property is located just blocks from Downtown Flushing, Flushing Hospital, Van Wyck Expressway, LIE and public transportation. The sales price represented a 6.5% capitalization rate and $91,250 per unit.

Neighborhoods: Flushing/ Agents: Stephen Preuss

The subject property is a 26’ wide 4-story walk-up commercial building comprised of approximately 6,552 square feet (+ basement and rear yard). The property consists of one (1) ground floor retail unit currently operating as a bar with five (5) vacant units above. Located just two blocks from Union Square Park, the subject property is in a prime location and a short distance to the 4/5/6 and L/N/R Subway lines. With the top three (3) floors delivered vacant, the subject property is a great user potential.

Click here for listing details.

Neighborhoods: East Village

Massey Knakal, In The News

5/15/2009 3:06:05 PM/ Massey Knakal/ News

Massey Knakal was featured in 18 articles this week.

Of note:
-    Landon McGaw and Stephen Palmese handled the largest Brooklyn sale of 2009 – 333 Ovington Avenue was picked up by GlobeSt, Brooklyn Daily Eagle, Brownstoner and RE Business Online
-    Bob Knakal was interviewed in Real Estate Bisnow on rent regulations and vacancy decontrol
-    Swain Weiner’s sale at 89-20 Northern Boulevard was featured in Real Estate Bisnow
-    John Ciraulo’s sale at 329 & 331 Lexington Avenue was featured in The New York Times
-    James Nelson, Brock Emmetsberger, Geoffrey Bailey, Mike DeCheser and Eric Greenfield all had their exclusive listings picked up in multiple publications

All articles can be found at Massey Knakal News

Agents: Brock Emmetsberger, James Nelson, John Ciraulo, Michael DeCheser, Robert Knakal, Stephen Palmese

Two adjacent, mixed-use buildings at 329 and 331 Lexington Avenue, located on the southeast corner of Lexington Avenue and East 39th Street in Manhattan’s Murray Hill neighborhood, sold in an all cash transaction valued at $5,126,000.

329 Lexington Avenue is a five-story, 23.5’ wide building containing approximately 5,738 square feet. This walk-up building consists of six residential apartments and one retail space that is occupied by a lounge with approximately five years remaining on its lease. There are six apartments above the retail with one delivered vacant. The property is zoned R10, and has approximately 13,062 square feet of unused air rights.

 331 Lexington Avenue is a seven-story, 24’ wide corner building containing approximately 12,600 square feet. This elevatored building consists of 12 residential apartments with a restaurant and a delicatessen on the ground. The apartment mix is comprised of eight rent stabilized units and four vacant units. The property is zoned R10, and has approximately 6,600 square feet of unused air rights.

Massey Knakal Realty Services, NYC’s #1 building sales firm, was the sole broker in this transaction.

Neighborhoods: Murray Hill/ Agents: John Ciraulo

A six-story, 119 rental unit elevator apartment building at 333 Ovington Avenue located between Third and Fourth Avenues in Brooklyn’s Bay Ridge neighborhood was sold in an all cash transaction valued at $11,225,000.

The sellers, 333 Ovington Avenue Inc., purchased the property in 1955.  After three generations of ownership and management, the family retained Massey Knakal on an exclusive basis to market the property.  

Through Massey Knakal’s comprehensive marketing program, 25 offers had been procured. The price equates to 9x GRM, $121 per square foot, $94.3k per unit, and, more notably, a 6.0% capitalization rate.  

Massey Knakal Realty Services, NYC’s #1 building sales firm, exclusively represented the seller and was assisted by the legal council of Peter Schwartz and Lester Henner from Graubard Miller.  

Neighborhoods: Bay Ridge/ Agents: Stephen Palmese

Now that the Manhattan multifamily market is in a slump, investors and other market participants have been asking me to compare current conditions to various points in previous cycles in the past 25 years. They want to know what the market looked like in the 1980s, when we were booming, and in the early 1990s when we almost went bust. What were the peak-to-trough comparisons then? How long did the recovery take? They have the same questions about what happened before and after the recession of the early 2000s. Above all, they want to know how low the market is going to dip this time, from its high point in 2007.


Looking at the market from 1984 (the year I started selling buildings) to the present, we notice cyclical patterns that indicate that to some extent, history repeats itself. However, it has never been easy to anticipate the peaks and the valleys.


The most effective way to analyze Manhattan’s multifamily market over the past generation or so is to compare capitalization rates and gross rent multipliers (GRMs) during that period.


The “cap rate” is the ratio of a property’s net operating income, and either its original price or current market value. In other words, if you paid $1 million for a building that nets $60,000 in a year, the building’s cap rate is 6%. This is a way of determining how soon a property will pay for itself. By dividing a property’s cash flow by its cap rate, you can estimate the property’s market value. The GRM is simply the ratio of a property’s price to its annual rental income before expenses. The multiplier is the number of years it would take a property to pay for itself in gross received rent.


While GRM analysis is useful—particularly in a regulated environment such as we have in New York City—cap rates are stronger indicators of the relationship between a property’s risk and its cash flow growth potential. The price of a higher-risk property should be justified by a higher cap rate, while a property with a low cap rate should show greater upside potential in its cash flow.


By itself, a building’s cap rate doesn’t mean much. You have to compare that rate with those of similar properties, and observe how the building’s cap rate has changed over time. You also have to compare it to changes in commercial mortgage rates and 10-year Treasury bill rates.

 

Graph A shows the 25-year trend in cap rates for both walkup properties and those with elevators. The average cap rates for that period have been 8.40% for walkups and 7.68% for elevator buildings—but you can see that in the mid-1980s, average cap rates for both walkups and elevator buildings were in the double digits, and that in the mid-2000s they’re much lower.


Click here to read full article and for further graphs analyzing Cap Rate vs. GRM

Agents: Robert Knakal

There was a point in time when I was applauding the Governor for his position on the state budget. Very early on, he was beating the drum of favoring reductions in government spending as the way to solve the state budget deficit. He gave speeches and lobbied for spending cuts. At the end of the day, this positon was abandoned and 80% of the pending budget deficit of approximately $17.7 billion will be bridged by 137 new taxes, fees and charges that New Yorkers did not have to pay before.

Click here for full article.

Agents: Robert Knakal

2920 Coney Island Avenue: This is a mixed-use two story building in Sheepshead Bay that was formerly a decoration and florist showroom. There is a driveway with a gated entrance. The property also has two large storage containers and rear parking.

Click here for listing details.

Neighborhoods: Sheepshead Bay

A mixed-use Bushwick building has 2 storefronts & 6 apts and is located on a major retail avenue. The property is one block from a recently renovated park and near the “L” subway stop at Dekalb Ave as well as the “M” subway stop on Myrtle Avenue.

Click here for listing details.

Neighborhoods: Bushwick

Approved plans for a six story elevatored townhouse plus basement that is currently in construction. Plans for the Chelsea townhouse call for 5 bedrooms and 7 bathrooms. The property will benefit from a tremendous amount of outdoor space, private garage and below grade recreation room space. The mechanical room will be located on the roof, allowing for more usable space within the building.

The townhouse will be steps from the newly constructed Highline Park, while benefiting from the serenity of neighboring townhouse gardens in the rear. Purchaser could benefit from the opportunity to custom tailor a townhouse to their personal needs. The property can be delivered as a "shell" and will be vacant, making 462 West 25th Street ideal for either an investor, developer or end user.

Click here for listing details.

Neighborhoods: Chelsea/ Agents: Brock Emmetsberger

A three-story mixed-use building at 89-20 Northern Boulevard, located on the southwest corner of Northern Boulevard and 90th Street, was sold in an all cash transaction valued at $1,190,000.

The 4,920 square foot building sits on a 20’ x 100’ footprint. The building features four retail shops and four apartments. There are two (2) three-bedroom apartments and two (2) two-bedroom apartments. Most tenants are paying below market rents with no leases. The sales price represented $242 per square foot.

Neighborhoods: Jackson Heights

The owner of this property can build one of the largest new Commercial and/or Residential buildings in Southern Brooklyn with flexible zoning allowing a wide variety of uses. Building formerly on property has been demolished and the land has been graded.

Many new residential condominium developments recently sold (some for more than $500/sqft.) & more being built in this desirable neighborhood. Near public & private schools, recently renovated library, shopping, houses of worship. Subway station is a few short blocks away and property is on bus route. Minutes from Ocean Parkway and Belt Parkway. Owner will consider holding paper, JV's, etc.

Click here for listing details.

Neighborhoods: Bensonhurst/ Agents: Jeffrey Shalom

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