We reached and passed an inflection point in the past few weeks. Sellers have become much more realistic in closing the pricing gap after realizing that there will be no silver bullet in overturning the new rent laws.
HARRISON, N.Y. (PRWEB) December 02, 2019
Despite regulatory and pricing factors impacting the investment sales market, RM Friedland’s Team Lala has seen a jump in business throughout the month of November.
"We reached and passed an inflection point in the past few weeks" says Marco Lala, Senior Vice President at RM Friedland. "Sellers have become much more realistic in closing the pricing gap after realizing that there will be no silver bullet in overturning the new rent laws."
Over the course of two weeks, Marco and his team have signed up over $95 million in exclusive listings. These exclusives include 530 West 236th Street in Riverdale, NY – an unheard-of opportunity for an investor to acquire a 1950s built elevator building with a majority of its income being generated from free market apartments. The Team also put an "opportunity zone" development site on Jerome Avenue in the Bronx into hard contract, signed after a grueling thirteen-week comments and negotiation period. Among their new inventory are three newly constructed multi-family buildings with long- term 421a abatements, a 2008 built mixed-use building on White Plains Road, a retail building in City Island, and a mixed-use building on 181st and Audubon in Washington Heights. In addition, the team is marketing a mixed-use strip center in Cortlandt Manor, NY.
"You will see a commercial real estate sell-off," Marco continued, "but, the demand is still there. Barring any drastic change to the capital markets, interest rates, or another regulatory torpedo, we will see investors stepping up to the plate as cap rates decompress. More importantly, expect to see cap rates back to north of 5%, 6% and 7% depending on proximity to core or tertiary markets.” Team Lala also recently closed on a transaction on Belmont Avenue in The Bronx with a 7.2% cap rate.
About RM Friedland:
RM Friedland is a commercial real estate services company serving the Tri-State Metropolitan Area. The company relies on a team of talented veteran and junior brokers who represent all asset classes. Its brokers are supported by robust databases and a capable staff that is dedicated to the success of each broker. To find out more about RM Friedland please visit rmfriedland.com.