Margules Properties has been an early investor in many neighborhoods which witnessed tremendous growth including the East Village, the Lower East Side, Chelsea, Hell’s Kitchen, Elmhurst, Queens, Jersey City, NJ, and South Beach, Florida. We identify neighborhoods by the quality of housing stock, proximity to transportation, distance from places of employment and other factors. MPI’s strong relationship with local brokers affords arms-length access to off-market deals, market information and trends.
PRODUCT TYPE:
Multi-family, office and retail
LOCATION:
Manhattan
Brooklyn, Queens, Long Island, northern New Jersey
South Florida
INVESTMENT SIZE:
Minimum $3 million if located in Manhattan
Minimum $5 million if located close to Manhattan
Greater than $10 million outside these areas
INVESTMENT STRATEGY:
- Identify undervalued neighborhoods poised for growth
- Pinpoint good housing stock located near transportation
- Seek out buildings that have been mismanaged for years
- Purchase below replacement cost and below market rents
- Increase value through proper management, capital improvements and neighborhood appreciation
THOROUGH DUE DILIGENCE:
- Multiple inspections of the property
- Thorough review of infrastructure
- Review of every lease
- Engineer’s property condition analysis
- MAI appraisal
- Environmental report
- Analysis of rent regulation historical reports
- Historical building expense report
- Building violations and ECB violation report (Full title report obtained at closing)
- Thorough financial analysis
- Thorough review of lease and sales comps, market trends and demographics
Note: Investment criteria subject to change