“ORANGE IS THE NEW BLACK”
THE BEAUMONT, 730 Riverside Drive, New York, NY
Type of Property: Rental Apartment House
Reason for Contacting Citadel Realty:
The building was part of a $1.1 billion portfolio purchased by an investment bank. The investment bank hired us to manage the building and to develop a course of action to increase the property’s value. At the time of purchase, 35 of the 65 units were vacant, and the investment bank was only interested in fixing the building for sale, without renting the vacant units.
Our Strategy
Thinking outside the box, we contacted with the New York State Governor’s Office of Motion Picture & Television Development with the idea of leasing out parts of the building for a filming location.
The End Result
The Netflix hit series “Orange is the New Black” leased all 35 vacant units for its use in the filming of the show’s first season. Substantial income was generated by this arrangement, which was used to renovate the property for sale. Due to our efforts, the building sold for a very high price. Interesting note – the film crew hired the existing tenants to assist with production. A win-win all around.
Turnaround Time: 2 years.
ONE FOR THE BOOKS
340 West 12th Street, New York
Type of Property: Townhouse with Carriage House and Garden, circa 1860
Number of Units: 1
Reason for Contacting Citadel Realty:
Citadel Realty Services was contacted by a foreign-based Trust Company from the Isle of Jersey, United Kingdom, which had entered a judgment, both here and abroad, against an international financier. 340 West 12th Street was one of the properties seized from the financier after the entry of judgment. The Trust Company hired Citadel Realty to renovate both the Townhouse and Carriage House so that the property could be marketed for rent, with the ultimate goal of selling the property to satisfy the judgment
Our Strategy
We quickly brought in a crew of electricians, plumbers and painters to renovate the property in order to get top dollar for our client.
The End Result:
Citadel Realty Services quickly rented out this magnificent property for a substantial sum, and ultimately sold it for $10.5 million.
Turnaround Time: 3 years
quick thinking
310 Madison Avenue, 342 Madison Avenue & 400 Madison Avenue, New York, NY
Type of Property: Class A Office Buildings
Reason for Contacting Citadel Realty:
The mortgagee holding the outstanding debt on all three commercial properties approached us to find a buyer for the full amount of the defaulted debt and conclude the foreclosure process.
Our Strategy:
We assembled a list of potential buyers and provided each with the Offering Memorandum that we prepared containing all necessary information to facilitate a sale of the properties.
The End Result:
Citadel Realty Services quickly concluded a sale of the debt for $200 million. This allowed the purchaser of the debt to pursue the foreclosure and take ownership of all three properties.
Turnaround Time: 60 days.
SAVVY MANEUVERING
5 Properties in Harlem, New York, NY
Type of Property: Residential Apartment Buildings
Number of Units: 400
Reason for Contacting Citadel Realty:
The client had just sold a major New York property and was purchasing five (5) separate apartment buildings under a Section 1031 exchange. He needed a professional in building management to quickly step in and turnaround the management problems plaguing the five properties.
Our Strategy:
To implement an effective management program on an expedited basis so that the closings could take place within the timeframe mandated under Section 1031.
The End Result:
All five properties closed within 30 days, and Citadel Realty took over the management of properties so that the client, now owner, could resell the properties at a profit.
Turnaround Time: 18 months
FROM PROBLEM TO PROFIT
3514 Wayne Avenue, 3520 Wayne Avenue, and 3522 Wayne Avenue, Bronx, NY
Type of Property: Medical Office with parking lot
Reason for Contacting Citadel Realty:
An estate inherited these three properties on Wayne Avenue in Bronx County. Each of the properties was losing money, and in need of proper management. The estate contacted Citadel Realty to address these problems and turn a loss into a profitable investment.
Our Strategy:
The properties consisted of: a three-story building with an empty medical office on the ground floor and apartment units on the second and third floors; a vacant three-family building in physical decline; and a vacant lot. We contacted Montefiore Hospital and convinced it to: lease and renovate all three floors of the building at 3514 Wayne Avenue for medical purpose; tear down the building in decline; and consolidate the (now) two vacant properties at 3520 and 3522 Wayne Avenue for use as a paid parking facility for Montefiore’s patients and staff.
The End Result:
Montefiore renovated the properties for use as a clinic for Children’s AIDS Research with adjoining parking. It is the only such facility in the country, and our client now has a highly profitable asset.