Northgate Closes Bankruptcy Sale at 54% Premium Over Opening Bid
Northgate Real Estate Group closed on a seven-building Brooklyn multifamily portfolio for $18.6 million, a 54% premium over the $12.1-million opening bid. The sale was conducted live and online and approved by the U.S. Bankruptcy Court, Eastern District of New York.
Northgate ran a dual-track marketing process, soliciting bids both for individual buildings and for the portfolio as a whole. Qualified offers were received on both bases. The portfolio ultimately traded at a price exceeding the combined total of the highest bids for each individual property.
“There’s a misconception that bankruptcy sales yield below-market prices,” said Greg Corbin, president of Northgate. “To the contrary, it’s consistently proven that when buyers believe they are pursuing a ‘discounted opportunity,’ they often become more aggressive and ultimately pay more than they would in a traditional sale.”
Totaling 47 units, the portfolio spanned the Williamsburg, Greenpoint, Bushwick, and Crown Heights neighborhoods.
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Brokers
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Remax Real Estate Professionals
Re/Max Real Estate Professionals
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Jared Ennis
Central CA Commercial | California
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Rick Recckio
Recckio Real Estate & Development
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Greg Corbin
Northgate Real Estate Group
Lenders
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Essex Property Trust, Inc.
California
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Josh A
California
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Bob Tuteur
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Andrew Schildcrout