Page 68 - SRI-Property-Book_2020-flipbook

THREE-TEAM APPROACH

CASE STUDY: 179-08 HILLSIDE AVENUE

Starting in early 2018 and into 2019, Schuckman Realty Inc. began advising a group of property
owners whose long-term retail tenant, Burger King, approached a lease expiration without options.
The subject property, 179-08 Hillside Avenue sits on a far corner, above the 179th Street F-Train
Subway Station, with more parking than most properties in the direct area. The property is located
in a historically great strong retail market that has seen considerable residential development in
recent years.

The client, a family, was faced with an array of decisions: re-lease to the existing tenant who was
paying under market rent, write a lease with a new retail tenant, sell to a mixed-use developer, or
long-term ground lease the site to a developer. Each scenario posed different questions, different
financial returns, and lots of tax implications as the family ownership was structured as an S-Corp.,
further complicating the process and direction.

The Schuckman Realty three-team approach provided ownership with the ability to gather offers
on all fronts. The Tenant-Representation team was already working with numerous tenants in the
Jamaica/Jamaica Estates markets and was able to provide current feedback on expected rent from
tenants already in the market.

The Landlord-Representation team was exclusively working multiple listings in the area and
presented the activity they were confident the family could expect to receive; along with delivering
the new opportunity at 179-08 Hillside to their potential prospects. At the same time, the Investment
Sales Team knew the property would be in high demand with the development community, both as
a sale and ground lease, from recent dealings with residential developers in the market. The family
wasn’t sure which route they should take, and the Schuckman Realty approach provided them with
opportunity to test all markets and make an on-the-fly decision that was best for the family.

No other brokerage firm could provide this proven method as effectively as
Schuckman Realty Inc. could; three teams working side-by-side with only the
client’s best interest at the forefront, and ultimately Schuckman Realty was hired
exclusively to represent the family.

The Schuckman multi-team method worked exactly as designed. Our Tenant and Landlord-Rep
teams used their past experience and relationships with Burger King to understand where the fast
food tenant’s interest stood and what level of rents they were prepared to pay. All three teams
brought offers from existing and new tenant relationships, as well as developers interested in
purchasing and ground leasing. Leasing numbers were pushed well beyond their previous lease
rate, and sale and ground lease offers poured in, well-above what most of the development
community understood to be market, approaching 30% premiums.

The family huddled and decided that leasing directly to a national retail tenant was the best option
for them, providing a solid rent, secure credit-tenant, with the swiftest road to cash flow.

This is one of many examples demonstrating why hiring the Schuckman Realty Teams is the best
option for landlords and potential sellers looking to test the market, transact as quickly as possible,
and help them make the best, most educated decision. We don’t try to sway decisions one way or
the other, because our teams have interests on all fronts, and are incentivized to work together as
one cohesive unit. We are an owner’s true best friend.