500 rt 17 south, suite 303
hasbrouck heights, nj 07604

t. 201.383.4044 | f. 201.383.4088
44 Executive Boulevard, Suite 206
Elmsford, NY 10523

t. 914.208.2200 | f. 914.208.2201
case studies
the Property
Location: Bayonne, NJ
Size: 85 Loft Apartments
Sale Price: $32,100,000
Date Closed: 2018
the Challenge
This luxury apartment complex was previously marketed for sale unsuccessfully by several national brokerages. The failure to generate results left the owner hesitant to engage the services of yet another brokerage firm. One of the challenges to finding a buyer was an unfavorable debt structure that needed to be assumed by a qualified buyer. If not assumed, there was an aggressive prepayment penalty that was required to pay off the loan. Additionally, the asking price for the asset appeared extremely high based on other sales comps in that market.
the Solution
Redwood Realty did its homework and found that the property had some untapped potential to create added value. The existing property was situated in a former Maidenform factory that had been redeveloped to create unique luxury lofts in a high-demand area. Redwood Realty discovered the potential to build additional units on three neighboring lots. The firm created a marketing plan that highlighted the attributes and amenities of the existing property along with the future upside that could be gained via the potential development opportunity.
the Result
The entire Redwood Realty team worked together to identify a private real estate buyer based in Manhattan that also recognized the tremendous value that existed in this asset. The buyer purchased the complex for full ask price and assumed all costs associated with the loan pre-payment penalty. In this case, the added development opportunity was a critical part in being able to successfully complete this transaction. Redwood Realty was able to achieve the seller's aggressive strike price and close on the sale of the complex at the highest price per unit in the history of the city.

Hackensack

Chatham

Hasbrouck

500 route 17 south, suite 303
hasbrouck heights, nj 07604
t. 201.383.4044 | f. 201.383.4088
44 Executive Boulevard, Suite 206
Elmsford, NY 10523
t. 914.208.2200 | f. 914.208.2201