Case Study - Hillside Avenue Taxpayers
Three buildings on Hillside Avenue, leased to seventeen varied tenants, were under-performing when these properties were acquired in 1969. Hillside Avenue Taxpayers were a combination of one and two-story retail/residential/office properties located at the 169th Street subway station on New York’s Queens Boulevard IND line. Several important bus terminuses were in the immediate vicinity. As a prominent real estate firm, Butterly & Green Realty contracted its large offices in one of these corner buildings, smaller tenants were inserted into this property.
A rent-controlled apartment dragged down the average per unit rental of these properties. Moreover, residential apartments were more management intensive than desired. In addition, larger stores were unmarketable in this environment.
BENEFITS TO CLIENT
Costs were reduced when apartments were converted to offices. Lower quality tenants were replaced with local chains raising the attractiveness of these properties to future investors. Rents increased as larger tenant spaces were divided. In 1983, these three Jamaica buildings were sold at a large profit before deteriorating demographics and changing transportation patterns were able to hinder the price realized for this sale.