LichtensteinRE has just sold an Industrial Warehouse in Hunts Point, South Bronx, NY for a record price of $7,325,000 to The Wonderful Company

Riverdale, New York. (September 7^th, 2017)  LichtensteinRE has just successfully sold an industrial manufacturing refrigerated and freezer distribution warehouse located at 1123 Worthen Street in Hunts Point, South Bronx, New York, 10474. The property was sold for a record price of $7,325,000 all cash.

Back in 2008 Gourmet Guru a gourmet food distribution company founded in 1996 acquired this property and invested millions to outfit it as a state of the art refrigerated and freezer center centrally located in Hunts Point. In 2016, Nasdaq traded “UNFI” United Natural Foods Inc. and Fortune 300 Company, with nearly $9 billion in revenue and over 1,000 trucks is the largest distributor of natural and organic foods, specialty foods, and related products in the United States and Canada and is the primary distributor to Whole Foods Market, bought Gourmet Guru for an undisclosed price. UNFI leased back the entire property until mid 2017. Just recently Andrew Lichtensetin sold this property which was delivered vacant at the time of the sale to new buyer The Wonderful Company based in California, one of the largest privately owned companies in the entire country with $ 4 billion in sales. The Wonderul Company is a grower and distributor of 9 of their own brands including famous household names like POM Wonderful Pomegranate Juice, Wonderful Pistachios, Wonderful Almonds, Fiji Water as well as halos, Wonderful Sweet Scarletts Texas Red Grapefruit, Teleflora fresh flower delivery, Justin World Class Wines and Landmark Vineyards and Winery.

According to NYC the property has 14,320 above ground usable square feet; however, including the usable storage cellar and parking lot there are actually 33,000 usable square feet at this industrial warehouse. The sale’s price represented a $512 per square foot and a Cap rate from the prior UNFI tenant of around 4.47%.

The warehouse property located on the very desirable corner of Barry and Worthen Streets, is in mint condition, and was fully modernized, retrofitted and renovated in 2010.

This industrial property built in 1920, contains brand new offices and conference rooms, state of the art security digital high definition cameras, usable expandable exterior roof deck, leed certified energy efficient HVAC cooling refrigeration system, fenced yard and a freight elevator. The building possesses a tremendous amount of electrical power consisting of two 400 amperage electrical panels, and five 250 amperage electrical panels making a total of up to 2,050+/- amps of electricity. Equally important, the property contains a corner parking lot with four 18 Wheel Truck Refrigerated Loading Bays.

The new buyer will also get the property’s Premier location in (NYEZ) Economic Empowerment Zone benefits, including, but not limited if applied for and approved, low interest loan availability, tax credits, reduced/exempt real estate taxes, discounts on Con Ed gas and electrical utility rates, huge savings on mortgage recording tax and construction exemption sales tax.

The building is located in the Trendy Hunts Point Section of the South Bronx, the New “Piano District.” Like Mott Haven and Port Morris, Hunts Point is going through a gentrification process. As an example, average rents in Mott Haven/Hunts Point rose by 28 percent between 1990 and 2010-2014. Aditionally, almost 46% of all development in the Bronx is happening in the South Bronx.

The property is right off the Hunts Point Food Distribution Center, the Largest Food Center in the World. Hunts Point Cooperative Market is a 24/7 wholesale food market located on 60 acres with revenues exceeding $2 billion annually. It is comprised of over 800 food wholesalers, distributors and food processing businesses and it employs over 25,000 workers.

Finally, the  property is Right off the Bruckner Expressway and other major highways for easy quick access to Manhattan and other boroughs. It is also located steps from the 2, 5 and 6 Subway Train Lines. The Property is located only two blocks away from the already approved Metro-North Train Stop in Hunts Point.

The property was exclusively marketed by Andrew Lichtenstein who was the sole source that procured the buyers as well. LichtensteinRE has been actively selling multifamily property and setting sales records for its clients in and around New York City, especially in Brooklyn and the Bronx.

About LichtensteinRE

LichtensteinRE specializes in the exclusive sales of multifamily and mixed use commercial real estate properties in New York City’s 5 boroughs. LichtensteinRE is a full service Commercial Real Estate Sales, Financing and Advisory Service Boutique based in New York City, the financial capital of the world. LichtensteinRE’s proven experience, track record, financing ability, exclusive buyers and connections with tens of thousands of property owners assures their selling clients the best possible price when a landlord owner wants to sell their property.

DoctorMortgage, which is LichtensteinRE’s financing division, has been a leader in commercial real estate mortgage debt financing since 1991. DoctorMortgage is able to negotiate and facilitate financing to deliver the best price, leverage and return on investment possible.

LichtensteinRE’s greatest ability is creativity and problem solving. After selling the owner’s property, LichtensteinRE has assisted successful sellers in locating replacement 1031 tax deferred exchanges and in some cases has more than doubled the seller’s net income post-closing. To learn more contact Andrew Lichtenstein at (800) 242-9888 or AL@LichtensteinRE.com

LIVE FREE

HOW TO LIVE RENT FREE IN NYC

By Andrew Lichtenstein

President

LichtensteinRE.com and Andrew Lichtenstein, Inc.

• Inculcation: Learning From Personal Experience:

When I was a kid growing up in Bayside Queens NYC, my dad owned an accounting tax practice in Forest Hills Queens. My father told me he was happy and relaxed because we were living rent free. My parents bought their first home in Bayside Queens New York City straight out of college. The home was a recently constructed 2 family home. Their entire mortgage payment was paid entirely by our upstairs apartment tenant. My father suggested that when I marry, that I too follow his footsteps because he felt it was a great blessing to live stress free and rent free.

My parents’ first home was on a busy corner bus stop on Cloverdale Boulevard directly overlooking one of the busiest highways in the country, Interstate 495, the Long Island Expressway.

My parents sold that house, made a great profit and repeated the same success. Their second home was in Bay Terrace Bayside, Queens NYC a quiet residential bedroom community in close proximity to beautiful waterfront, parks, and recreational fishing at Fort Totten Park on the Little Neck Bay overlooking the Throgs Neck Bridge. That second home also was a respite for our parents who again continued the American dream of home ownership but even more improved, because once again, we lived rent free in NYC.

• Spreading My Wings to Fly:

Fast forward to me, their son. Right out of college from NYU Stern School of Business I bought my first home in Manhattan and lived rent free with the mortgage paid by roommates and later by tenants.

True to my father’s wishes and advice, my wife and I bought our first home together in Riverdale NYC living rent free with our mortgage paid by our tenant downstairs. Riverdale is perhaps NYC’s closest suburban bedroom community in Bronx, NYC. Riverdale is located right in New York City, but is 7 minutes by car to the Upper West Side of Manhattan.

• Teaching Others How To Fly: Teach them to fish, feed them for a lifetime:

Today I help my clients to achieve the same American Dream.

“You give a poor man a fish and you feed him for a day.

You teach him to fish, and
you give him an occupation that will feed him for a lifetime.”

(Chinese proverb.)

One lucky client bought a 2 family home and vacant buildable lot in Bronx New York. This young man is a second generation real estate principal. He is applying for governmental financing which could offer up to 96.5% project financing to pay for the cost of the home purchase plus renovation costs. The monthly mortgage payments are expected to be around $3,000 a month. If the tenant apartment were rented for $2,000 a month and the vacant lot were rented out for parking which is in great demand, the parking income should be at least $1,000 a month, bringing total income to around $3,000 a month. The result would be that my client too could be living rent free in NYC.

Eventually in the future, this owner occupied buyer could move out, rent up the owner’s unit and end up making up to $23,000 nearly $2,000 a month positive cash flow with a total investment of only 3.5% of the project costs or as little as $22,715 before closing costs. That could mean making up to 101% return on investment every year! Adding back amortization $35,000 mortgage pay downs, the return on equity could rise to 154%.

Amazingly this lucky buyer can file plans to construct at least a 4 family home on the adjacent vacant lot that I am selling him. That home can be sold for profit, or as he prefers retained for cash flow.

My client can transfer the air rights from the 2 family home to the adjacent vacant lot and construct up to a 7 family rental apartment building, and resell both properties and make up to $1 million profit.

This builder wants to keep the property, develop it for maximum monthly profit, which after development, could reach $157,000 annual net income before debt service.

I wish to share my extensive knowledge and experience of commercial real estate investments, ownership and financing to help our clients to buy, sell, finance, build and fulfill the American Dream and to create wealth and success. Just as my father blessed me with this knowledge so too I hope to share it with my clients.

Welcome to the Bronx. Well positioned for LichtensteinRE to help you buy and profit now for the future.

Bronx: Perfectly Positioned For Commercial Real Estate Developers and Investors with 2016 35% Sales Growth Home Sales 

The number of home sales in the Bronx soared in the first quarter of this year by +35 percent, far outpacing Manhattan -2%, Brooklyn -4% and Queens +6%.

Source: Moving to the Bronx

By C. J. HUGHES MAY 27, 2016

http://www.nytimes.com/2016/05/29/realestate/moving-to-the-bronx.html?_r=0

My name is Andrew Lichtenstein, Principal Broker of LichtensteinRE.com

I have been selling commercial real estate including multifamily and mixed use investment properties as well as development sites in Bronx, Brooklyn and Manhattan since 1991.

I have seen a huge upsurge in demand from real estate developers who are priced out of Brooklyn who are not vying to buy and build in The Bronx.

I have several development sites that are not receiving multiple offers.

I see this as a great opportunity for sellers and buyers and developers to take advantage of current low interest rates and relatively cheap apartment rents that are only rising.

It just makes perfect sense.

The average cost of land in the Bronx can be as dramatic as 10% of the cost compared to land in  Manhattan, as little as 20% of the cost of land in Brooklyn, and 30% of the cost of land in Queens.

Bronx commercial real estate sales volumes in 2016 are poised to reach $2 Billion or nearly 34% greater sales volume than in 2015.

To top it off employment is growing nicely.

New York City’s unemployment rate fell to 5.1% in May 2016 from 5.4% in April … Bronx. 7.4%. 9.2%. Brooklyn. 5.5%. 7.2%. Manhattan. 4.6%. 5.7%. Queens.

Source: New York City Economic Development Corporation

http://www.nycedc.com/sites/default/files/files/economic-snapshot/June%202016%20Economic%20Snapshot.pdf

I expect the current trend of demand to continue, which is a great sign for continued growth, development, returns and equity appreciation for property investors and developers in the Bronx.

By Andrew Lichtenstein, President Andrew Lichtenstein, Inc. LichtensteinRE.com

How To Double And Quadruple Real Estate Positive Cash Flow And Defer Taxes Using IRS 1031 Exchange

What do the exclusive seller clients of LichtensteinRE have in common with Albert Einstein and Warren Buffet?

Selling commercial real estate investment property and taking profits off the table is one of the objectives of real estate investing. However without prudent real estate financial planning, depending on which city and state you live in, up to almost 40% of profits will go to city, local, state, and various federal taxes ultimately at the time of the sale.
But thankfully there is a solution that can defer this tax consequence and compound your wealth.

Like The Jeffersons’ 1993 “Movin’ On Up” theme song, LichtensteinRE has been advising exclusive commercial multifamily real estate seller clients to increase their cash flow substantially so they too can “Move on Up.”

Would you prefer to leave a real estate closing table with only 60% of your profit or with 100% of your profit?
It’s not a trick question.
The answer is a no-brainer. But every day professional landlords make the error or unnecessarily leaving up to 40% of their hard worked for profits on the closing table.

Warren Buffett the world’s richest investor wrote “My wealth has come from a combination of living in America, some lucky genes, and compound interest.”

Albert Einstein the most brilliant scientist of the modern age wrote, “compound interest is the eighth natural wonder of the world and the most powerful thing I have encountered. He who understands it, earns it … he who doesn’t … pays it.”

I am passionate to help my exclusive selling clients realize their investment objectives and to help real estate buyers make the most of their real estate income. I think that the bricks should work for the owner and not the other way around. Real estate should ideally be 24 hour a day cash flow income generator even while the owner is sleeping soundly. It is my dream and objective to help my clients enjoy a better life, better standard of living and thus enjoy greater peace, harmony and quality of life all powered by the services that I provide my clients.

Here’s how LichtensteinRE has and can help:
Under the IRS tax code a seller that uses a 1031 facilitator to act as an escrow agent to hold the sale proceeds to purchase “like kind” real estate investment property that is purchased under the same ownership entity that sold the first property can defer 100% of the capital gains and exchange the first property for ownership of the newly purchased property.

We frequently find that clients are looking to exit active, hands on management and exchange into either passive real estate investment, triple net leased property or into property that will be professionally managed producing a higher positive cash flow post sale.

(A)
Here is a conservative example of a typical real estate sale and exchange that LichtensteinRE aims to achieve for its clients:
$5 million commercial real estate property at 4% cap rate producing $200,000 annual net income prior to sale and exchange into a 5% cap rate purchase that will produce $250,000 annual positive net income after the sale. That result is an immediate 125% increase from presale net income.

(B)
LichtensteinRE helped one real estate owners ago to sell New York City property at a cap rate of 4% and buy real estate outside New York City at around 8% cap rate. The result immediately post real estate sale and exchange was that the positive cash flow was 200% compared with the presale positive cash flow. Current positive cash flow 7 years post sale is now 400% that’s how to quadruple RE cash flow the presale cash flow due to rental increases etc.

How To Double And Quadruple Real Estate Positive Cash Flow

Harry Helmsley said “Location, location, location.“
I, Andrew Lichtenstein say, “if you can’t afford to buy The Empire State Building with its 5^th Avenue and 42^nd Street location, then buy “Cash Flow, Cash Flow, Cash Flow!”