united charities building - case study
TRANSCRIPT
CHALLENGE
Sell The United Charities Building(An office building circa 1893) without delay, for the
highest return possible in a trendy residential neighborhood (Flatiron district) which is now
teeming with uber modern residential skyscrapers.
Simultaneously BUY the “perfect” (45,000 sq ft )relocation space, whilst we find a buyer and negotiate
the sale of their original building.
Why was timing and strategy critical?Because as a non profit they do not pay heavy real
estate taxes - IF and only IF they ownA leasing transaction as a default position due to bad timing would have forced them to pay exorbitant real
estate taxes - a disaster to their balance sheet
ACTION
•Our investigation found that the building was by NYC zoning law “overbuilt”
•By removing 4,028 sq ft from one zone it would become compliant - this meant an additional 26,868 sq feet could be added to the other zone.
•The investors could add this to their “tower”
•Find a perfect 45,000 sq ft space to buy that suits their needs.
RESULT
Just under $1300 per sq ft A record!!
12 months of free rent for charities to relocate
Perfect location and new building identified thus keeping their tax exempt
status in order Cash windfall for charities balance sheet
and ability to fight poverty in NYC
CHARITY ROW SEES CASH WINDFALL
TESTIMONIALNomination for Real Estate Board of New York
“Most ingenious deal of the year award”
BRIAN FENNELLY CPA MHP REAL ESTATE SERVICES [email protected]
D. 212 763 4401
SOLD $128 Million