Investors hit area, hope for residential development chance

When it comes to New York City real estate, you never know what is going to happen next. Even when a deal appears to be going through, somebody could swoop in at the last minute and change everything.

A growing number of investors are targeting the neighborhood on the border between Bushwick and East Williamsburg.

According to multiple sources, a Long Island company, Hornig Capital Partners, is under contract to purchase 95 Evergreen Ave., for the price of $36 million. This comes as somewhat of a surprise, being that another buyer had recently agreed to acquire the property for $34 million.

There are many reasons why the 135,000-square-foot property received so much attention, including the fact that investors feel that zoning could change in the future, which would allow for residential development.

At this time, the area is only zoned for industrial and commercial use, but in true New York City fashion, there is always the chance that this will change, and that is what the soon to be new owner is hoping for.

Residential real estate in and around New York City is always hot. There are people who want to move to the area, as well as those who are looking for the next big thing, especially if it is new and shiny.

In some cases, investors take the chance on a residential development opportunity before they ever know for sure that it will pay off. With the help of the right team, these investors are able to make smart decisions that have the chance to make them money in the future.

Source: Crain's New York Business, "Bidding war adds $2M to cost of B'klyn warehouse" Daniel Geiger, Aug. 20, 2014