Home Buying in SoHo>Question Details

Olddeeds, Home Owner in SoHo, New York, NY

I have inherited a building in Mercer Street , NYC 5 stories with a restaurant on the ground floor. It is not modernized. What is its true worth?

Asked by Olddeeds, SoHo, New York, NY Sat Dec 11, 2010

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27
Good Morning,
Every property have value. It would be best to contact a commercial real estate broker to try to get a picture of the worth of your property. And all any broker can give you is what has sold in the pas and compare your building to that data and see where you fit. It's not perfect, but it works. It will give you a good idea, but to be honest the market place will tell you the real value. I have worked in commercial real estate for many years and have been involved in all sorts of transactions. I work primarily in investment sales, (which is what your property would be classified under) and retail leasing. Please feel free to call, there will be no pressure or obligation on your part and I can help you figure out your best next steps. The best way to reach me is either e-mail asummars@bondnewyork.com or my cell 646.246.8476. If I dont answer please leave a message and I will call you back. Best of Luck!
1 vote Thank Flag Link Mon Dec 13, 2010
Would you like to discuss a sale if the building?
0 votes Thank Flag Link Mon Sep 9, 2013
Ira and some other brokers gave you some great answers. The only way to value the property would be to have it appraised. Commercial appraisal usually utilized 2 or all 3 of the following evaluation techniques to come up with the value - income producing approach, replacement cost approach and comparable sales analyses. For income approach, they would analyze building's rentroll, payment history, scheduled increases, etc. and expense statement for the building to come up with Net Income. Then the divide it by a capital rate that is currently used in the market for this type of property to come up with the value. For the comparable sales valuation, they would look for similar type and size building with similar tenant structure and in similar condition that have been recently sold in the market area and make necessary adjustments. They would also have to look at the property to see what condition it is in, if there is any deferred maintenance and if any immediate repairs are needed. I would be happy to refer you to some commercial appraisers that can provide a realistic valuation.
0 votes Thank Flag Link Fri Nov 30, 2012
If you need the value for the estate settlement, you might want to ask a reputable commercial broker to give you a CMA (camparable market analysis) or to have the commercial appraiser do the appraisal - if required by the county/judge.

Getting a good CMA will not cost you anything, while appraisal will cost over 2.5K.
In most cases, if selling, the buyer will do their own appraisal, so, unless you have to, don't do the appraisal.

If you want to get really involved, go take a look at similar properties offered for sale, and drive by those that were sold previously (used as comps by your commercial agent).

Hope this helps,

Irina Karan
CDPE - Certified Distressed Property Expert
Beachfront Realty, Inc.
IrinaKaran@google.com
0 votes Thank Flag Link Thu May 3, 2012
The first rule in valuation is "Never" give or accept a valuation from someone who doesn't complete a thorough walkthrough of any property. It is way too easy to compare apples to oranges when picking a number out of thin air.

As a commercial real estate broker for five years at two of the aggressive firms in NYC, I have been called on to value many mixed-use properties such as yours.

Here is the process to a successful valuation:

- Complete the Walkthrough.
- Build a Competitive Sales List of recent Sales.
- Get a thorough Rent Roll from the Owner. If there are rent stabilized properties, receive a list of the legal rents from NYC's Dept of Housing & Community Renewals (DHCR). The legal rents are vital to knowing what the current base of rents are.
- Apply standard expense rules, in order to determine the Net Operating Income on the building.
- Apply a Market Rate Cap Rate (which is the current Ratio that similar buildings are selling for currently).
- Put all this into a detailed Market Valuation for the client.

I usually take three to four days after a walkthrough to build my valuation.

Hope any of this helps, and wish you luck in the market place!

- Ira Krivit
YorkstoneRealty.com
917-913-3400
0 votes Thank Flag Link Tue May 1, 2012
Many brokers have weighed in on this. Most of them are right. Without seeing the building inside and out, analyzing its condition and finances, the location, the layout and size of the units, frontage, exposure, noise, etc it is impossible to estimate its value. I have been an award-winning downtown agent for five years. I have an office on Mercer street and was instrumental in the recent deal at 45 Mercer for Lizarran restaurant. If you'd like to meet just click on my name and send me a message. I'm in the area almost every day :)

Cheers,

Rob
0 votes Thank Flag Link Fri Jan 21, 2011
Many brokers will tell you the property is worth much more than it really is because they want you to give them an exclusive listing. There are pretinent questions such as are there residential tenants and if so are any of them "regulated"? Sometimes when a property is inhereted all the information is not available and sometimes the information is not accurate. You should take some time and go over the documentation as to Leases and that kind of thing. One of the issues is how large is the property? Is it a narrow building or a larger building? Do you have mostly commercial tenants or more residential tenants? Is the building mostly vacant and how much work does it need? These questions are relevant to value of a property. When was the last time the roof was repaired or changed. What about the boiler and the risers in the building? What about the electrical and the plumbing. I am also a real estate broker, but I never assume anything. A credible seller makes for a good seller. This seems to be an investment property and the more information you have as a seller the easier it will be to sell the property to a credible buyer and will make closing the sale easier and less problamatic. Getting an appraisal today might not give you an accurate picture of the real estate market because property prices were inflated and there are no good comparables to make an assessment. The real estate market today is much different from say two or three years ago. Prices are lower but an inheritance can still bring you good money. If you think I can help you please feel free to contact me at ihsanamatullah@yahoo.com. I've been in the business a long time and sold a lot of properties commercial and residnetial with quick closings and can provide references from property owners in the area of the Mercer St property. Good wishes for your success and happy new year.
0 votes Thank Flag Link Sat Jan 1, 2011
Congrats, Mercer St is one of the most highly sought after addresses in the Village. I would suggest you first hire a "real estate" attorney, an appraiser to give you their expert opinion and then a trusted agent that can run comps and you can compare that with the appraiser. Please note that although you have a great address, residential deals can take an extended amount of time to sell so please be patient. I'd be honored to assist if you need my assistance. For an appraiser I suggest you contact Patricia Lavigne at 212-745-9012, plavigne@manhattanmortgage.com, Manhanttan Mortgage she's a mortgage broker that has gerat contacts for appraisers. FYI: full disclousure, I do not get compensated for referrals, best of luck!!


Tony Lara
Licensed Real Estate Agent
Rutenberg Realty
http://www.rutenbergrealtyny.com/agent_detail.aspx?agentid=49822
0 votes Thank Flag Link Thu Dec 16, 2010
A professional Real estate Broker will always know better than an appraiser the true value of any giving property, an appraisers never deals with an actual process of selling a building a broker knows the market in any giving moment and has the connections to buyers(that appraiser will never have) and the street smart to maximize the value of any property.
0 votes Thank Flag Link Thu Dec 16, 2010
Interesting, not one RE agent recommeded hiring a professional appraiser. An objective, unbiased opinion of value is where most people would start.

We do Commercial and Residential Appraisals in Manhattan.

Jim Lanfranchi, Archer Meade Appraisals, 212-551-3556.
0 votes Thank Flag Link Thu Dec 16, 2010
Because you received 17 answers all including a pitch to know more about property you inherited. I'm no different. Yes an address would allow us to do analysis & tell you it's value as it stands today & what upgrading will do to the value. Are you considering selling if you heard a number that peaks your interest?
0 votes Thank Flag Link Mon Dec 13, 2010
Hello Olddeeds,

As you realized from dozens of answers below, no honest broker is capable of giving you a gestimate without building address and specs.

I'm pressuming you may want to modernize this yourself keeping it mixed use or even converting it to a one, two + family home if you have money to invest into this project. Exploring a joint venture or selling are also great options, depending on what you are trying to accomplish.

If you are up to it, it may be best to schedule an appointment with you for a preview and valuation. My manager has 20 plus years selling New York buildings and knows the Townhouse market inside and out. You really need someone who specializes in buildings to help and guide you.

We'll be happy to answer any and all of your questions.

Best regards,
0 votes Thank Flag Link Mon Dec 13, 2010
I have sold in this area recently, please contact me at etross@halstead.com or 212 381 3322
to discuss your property further.
Thanks and looking forward to hearing from you.
Elaine Tross
EVP
0 votes Thank Flag Link Mon Dec 13, 2010
Well, this question depends on info. of the building, you definitely should use an apraisors (2) first!

Whether you have a property in Manhattan that you wish to sell or you are interested in acquiring property. Spencer is available to assist you.

Best regards,

Spencer Sutton - BondNewYork
0 votes Thank Flag Link Sun Dec 12, 2010
hI,
I HAVE JUST SOLD SOME PROPERTY IN Soho, Actually on Mercer St.
I really would need to preview the property to discuss it intelligently.
Feel free to contact me at
917 748 4043
or
etross@halsted.com
Elaine Tross, EVP
halstead property
0 votes Thank Flag Link Sun Dec 12, 2010
Congratulations on you inheritance.

I would suggest contacting an appraiser regarding the value. Also after you have established the financial status of your building and how much your annual expenses are going to be, if you find that you are not interested in taking on that much responsibility and want to sell it, then please contact me. I have a possible buyer.

Carolyn
cchappelle@bondnewyork.com
0 votes Thank Flag Link Sat Dec 11, 2010
I will need further information about the property, but will be happy to run comps for you to validate offer.
If you are thinking of selling your home, we can help to quickly sell your property. I will also, handle all the details for you so that your property will close in a smooth and expeditious manner. I will professionally guide you through all the paperwork and negotiations on your behalf (including meeting with agents, lawyers, banks, inspectors and appraisers).
Web Reference: http://www.desire2own.com
0 votes Thank Flag Link Sat Dec 11, 2010
Hi Olddeeds,

That's a pretty cool inheritance, but could cost you lots of money if not handled correctly!

The secret to successful real estate investments is determining the "highest & best use", which is obviously dependent on many different factors such as the economy, location, condition of the property, etc. etc. The only way to determine the value is to do an in-depth analysis, accompanied by an inspection and appraisal. I'd be happy to assist.

Jacobus (JJ) du Plooy
Weichert Realtors
Columbus Circle
Cell: 760-419-0663
jduplooy@weichert.com
0 votes Thank Flag Link Sat Dec 11, 2010
Olddeeds,
You have inherited something truly valuable indeed and I would not worry about the fact that it has not been updated. There are many possible uses based upon a number of factors. It can't be answered without a viewing and a lot of information. You should have an experienced agent with a good knowledge of SoHo meet with you and get more information and see the property.

Jenet Levy
Halstead Property, SoHo office
212 381-4268
jlevy@halstead.com
0 votes Thank Flag Link Sat Dec 11, 2010
Congratulations on your new inheritence! Use it well and in good health!!
With inheritence comes responsibilities, taxes insurance etc...
i can give you an estimate of the value of your property, however it is best if i come by and valuate it
from the standpoint of a broker.
In addition, you definitely should use an apraisor and make sure that the apraisor is from Manhattan since out of twon apraisors do not know what they are talking about.
If you need help or have any questions, please feel free to contact me at 646-660-0060 or e-mail me at fhamberger@citi-habitats.com
Kindest Regards
Fern Hamberger
Sr Asso Broker
646-660-0060
0 votes Thank Flag Link Sat Dec 11, 2010
There are many factors that need to be considered in order to establish a vlue, therefore either invite a few agents from different realty offices to take a look, gather information, etc., so that a value can be established, or consider hiring a licensed appraiser.
0 votes Thank Flag Link Sat Dec 11, 2010
So many things to consider here...condition, size, FAR, occupancy to name a few. I am representing a buyer who is looking for a bldg they can trun into a theatre. You should hire an appraiser & contact me please. My buyer is an international investor who is looking to buy cash. I can also help you find an appraiser & direct you in this process if you're looking to sell the property. Tks
0 votes Thank Flag Link Sat Dec 11, 2010
As already discussed, the true value depends on a few variables and the fact that it is not modernized can be a good thing. A Mercer Street location is also good news and I would be happy to provide you with an evaluation. Call me anytime at 917-312-4953 or email ntilbury@halstead.com.
0 votes Thank Flag Link Sat Dec 11, 2010
What part of mercer? Depends on net income, zoning, lot size, FAR, and if there are rent regulated tenants. We have a building currently for sale on mercer (i am a broker) and I own my building in the upper west side.
0 votes Thank Flag Link Sat Dec 11, 2010
The fact that its not modernized could be beneficial. If your planning on selling it the buyer might have entirely different plans for the building. You could consult a realtor to run comps or you could hire a good nyc appraiser. If you hire an appraiser you need to make sure they really know what they are doing.
0 votes Thank Flag Link Sat Dec 11, 2010
it's hard to value your building without looking at the specifics, basically the value of a building in NYC depends on few key elements; location, annual income generated via rent and annual up-keep. The fact that your building hasn't been modernized can actually increase the value of your building, this is what we cal up-side which can worth more to a potential buyer who is interested in modernize the building hence raise the prices.
0 votes Thank Flag Link Sat Dec 11, 2010
Sasha is that you? email me i can get you more info sfigueroa@bondnewyork.com
0 votes Thank Flag Link Sat Dec 11, 2010
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