23-00 Route 208, Fair Lawn
25,944 Square Foot Medical Office Building – Sale Price of $5,500,000
The Challenge
In June 2016, Team Lizzack Horning was tapped for the Leasing assignment to fill the few vacancies in the building. The Team worked diligently over the next few years to bring the building to full occupancy for the first time since Ownership acquired the asset. In early 2022, Ownership, primarily a residential multifamily owner/operator, informed the Team that they wanted to sell the property, so they can reallocate their resources to their primary business.
Action
Darren and Randy put the building up for sale and within a couple of weeks, several offers had been received for consideration. The subject property was quickly put under contract with a buyer from Brooklyn. During due diligence, it was uncovered that one corporate Tenant had vacated their suite despite continuing to pay rent. Another long-term tenant in the building who had been a month-to-month tenant gave notice they were vacating. The contract purchaser could not wrap their arms around the situation and terminated their contract.
The mortgage broker for the contract purchaser recognized the value of the asset and turned to one of his clients to create a partnership to purchase the building. Within weeks, the property had been placed back under contract with a new buyer.
Result
The new buyer went through their due diligence with relative ease; however, interest rates had already begun rising, which impacted their original underwriting. It soon became evident that both buyer and seller wanted to see the sale cross finish line. Darren and Randy were instrumental in bringing the parties together to “massage” pricing, which enabled the parties to proceed to the closing table. The Team was retained by the new buyers to continue as the Leasing Team for the building.
Project Team
- Brokers: Darren Lizzack & Randy Horning from NAI James E. Hanson
- Property Manager: Marcy Gross of Sheldon Gross Realty, Inc.
- Photographer: Simon Bracco Jr. at Visual Grip