Summary

 We were contacted by two sisters to evaluate their site, which was family owned for over 50 years. The corner site, located at 63-68 Austin Street aka 9132-9148 63rd Drive in Rego Park, Queens, housed the famed Shalimar Diner. At the time, the site was a non-income producing asset. 

Problem

The site was zoned in an R4, C2-2 district, which allowed a developer to build only 1.0X the lot size for a commercial building or 0.90X the lot size for residential use. This limited the maximum as-of-right buildable area to 14,000 sq ft. The owners reached out to three major commercial real estate firms, which provided a top-line value of $4.5 million, equating to $321 per buildable sq ft.

Solution

When we began our due diligence, we discovered that the northeastern portion of the lot shared a lot line with an R7-1 zoned property. This, along with other factors, led us to believe the site was a strong candidate for rezoning. We advised the family to market the property at $6.8 million ($485 per buildable sq ft), a price significantly higher than the $2.3 million difference between their previous three valuations. Within 45 days of marketing the site, we received 36 offers, sent out three contracts simultaneously, and successfully closed the deal for $6.55 million in a true all-cash transaction. By hiring us, the family ensured they didn't leave over $2 million on the table.

From the Sellers

“I will always remember how beautifully you orchestrated our sale…You made us happy and throughout it was wonderful to work with you. I truly hope we can continue to know one another.” HL

“Thank you so very much for shepherding this sale to a successful close…It was a true pleasure.” JL