Adapting, Improving, and wiping off the light switch

470 Sunrise Highway, West Babylon NY

The Assignment
Selling a mixed-use property for Super USA

The Strategy

470 Sunrise Hwy was a straightforward “meat & potatoes” mixed-use property; and being valued at just under $1 million, I knew that it would have broad market appeal.  There were only two small problems which needed to be overcome:  a) 40% of the building was vacant, and b) The Covid 19 lockdown began within a few months of listing the property.

Solving the Covid problem was slightly above my paygrade, but I adapted as necessary to the “Covid Protocols” imposed by regulators and common sense to keep business moving. 

Solving the valuation issue regarding the vacant commercial space was more within my control, and Covid notwithstanding, I implemented my 2-step marketing plan:  Emphasize the leasing the of the vacant space before pushing hard on the sale.  I identified small changes to the MEP systems which provided for independent control and expense allocation, which would enable accurate reimbursements.  I was able to illustrate the cost-benefit outcome to the seller, who fortunately recognized the net benefit, and was willing to make the necessary investment.

The Results

Ultimately, leasing one of two remaining units created the perfect condition for an investor/end user to acquire the property, where they also opened a second insurance office; a win-win for both the buyer and seller alike!

Lost & Found in Translation

Ostrowiec Świętokrzyski, Poland

The Assignment
Acquire a property at public auction to develop into a regional shopping center in Ostrowiec Świętokrzyski (pronounced “Ah-Stro-Vee-Etz Shvee-Int –Oh – Krisky”

The Strategy
As Executive Vice president and partner of Polimeni International, I was tasked with securing properties and planning the shopping centers we were developing in Poland. Our team identified a great site some 90 miles south of Warsaw: Some of the issues were a creek that ran through the property, a raised canal in the back, a new municipal road was needed on one side of the site to connect two main streets, and on the other side a public pool wanted part of the property for parking. The city just happened to own the dirt and we had to acquire it through public tender; our tenants signed leases written in two languages which were structured around three different currencies and had to satisfy three legal regimes. In other words, just another day in Poland.

The Results

Following a carefully choreographed strategy timed, literally, to the second, we won the RFP and acquired the site.  Tesco, , one of the largest grocery retailers in the world was a prospective bidder and competitor at the auction.  We neutralized this threat by joining forces  with Tesco, having them lease space as our anchor tenant, creating a triple-win scenario.  We literally created new legal structures for long term lease contracts, which were not previously allowable, to enable the necessary construction and permanent financing.  Our “double lease” model would go on to become the standard structure used by developers throughout the country.

Our engineers designed a system of permeable pavers for the rear parking lot to drain off any topping of the levee, and a humongo 10’ diameter culvert system in front to span the creek over which we laid the main parking lot, which also serviced the neighboring public pool.  We built the new road which dramatically improved access to the center and made an adjoining section of the property commercially viable; which we then subdivided and sold to French DIY retailer Castorama, for multiple times to cost of constructing the road itself, further improving the retail strength of the overall project. 

We broke ground on April 1st and it opened on Thanksgiving day, a blazingly fast 8 months for a 220,000sf covered shopping center – culverts, roads & all.  Well before then we had signed a “forward purchase contract” with First Property Group of London who closed on it shortly thereafter; Castorama built and opened their 110,000sf home store about a year later.

And while you can find “Mill Creek,” the “Stone Canal,” and “Polimeni Street” (as it was referred to by the locals) on a map, I don’t think our ¼ mile long road ever got a street sign or an official name!

Wipe the Windows, Check the Oil, (1.5 million) Dollar Gas 

23 Heitz Place, Hicksville NY

The Assignment
Mirabella & Castaldo LLC, purchased 23 Heitz Place in 2003 to run their new spring & brake business. Twenty years later, having sold the business, they no longer needing their 7,225 square foot repair shop, and retained Ron Epstein of RC Commercial Partners to market & sell the property.

The Strategy
With myriad challenging property characteristics, regarding parking, access, visibility and building condition, Ron recognized that the property would be more attractive to end-users than investors. Located on the edge of the Hicksville Downtown Revitalization District, outward appearances seemed to suggest that the surrounding property rush would spill over to 23 Heitz as well. Nevertheless, Ron advised Mirabella & Castaldo that the not being directly within the DRI, there was not sufficient upside potential for the property and that the universe of prospective buyers would therefore be limited.

Having tested the market to determine the appetite for B Class office property in a post-Covid office market, the ownership and I chose to bring the property to market through the Ten-X property platform, thereby ensuring a fair market price would be obtained; and crucially for the seller, with a date-certain close and no buyer contingencies.

As expected, the central Nassau generated tremendous activity, however; there were precious few buyers who were positioned to take advantage of the property as-is. Once the buyer was established (an expanding body & repair shop) and a near full price offer was negotiated, the transaction management had to be very carefully orchestrated; the prospective buyer’s representation lacked familiarity in this area of expertise, so the seller’s team had to help deal with issues on “both sides” of the contract.

The Results
The property was put into contract in less than two months of listing. After overcoming many challenging issues of financing, title, delivery, among numerous other concerns, the deal closed months later.

Tuning into the Right Deal Channel

5018 Express Drive South, Ronkonkoma, NY

The Assignment
Divesting Ronkonkoma Partners, LLC of their 13,000 square foot office building, the Ronkonkoma Business Center

The Strategy
I needed to develop a strategy for showcasing a fully stabilized office property with little apparent upside. Although fully leased and built to capacity on the 1-acre site, I was able to draw upon my development & planning experience to identify a means of increasing the GLA within the existing building footprint, offering a prospective buyer with an opportunity to add value with minimal capital outlay.

Having tested the market to determine the appetite for B Class office property in a post-Covid office market, the ownership and I chose to bring the property to market through the Ten-X property platform, thereby ensuring a fair market price would be obtained; and crucially for the seller, with a date-certain close and no buyer contingencies.

The Results
Coordinating a seamless collaboration among ownership, property management and the support from the incomparable Ten-X deal team, the transaction was swift, efficient and successful; with all parties extremely satisfied with the outcome.