Acquisition · New York, NY
A basis-reset acquisition at half the prior owner's basis
59 Units · $16M Purchase · $11.3M Loan
Most lenders saw risk. We saw a basis reset.
Positioning is the difference between a deal that dies in committee and one that closes.
01
Situation
A 59-unit NYC multifamily portfolio, roughly 80% rent-regulated, available at a $16M purchase price — about half of the prior owner's basis. The prior note had traded at a significant discount.
02
Challenge
The discount was the problem. Most lenders read a steeply discounted prior note as distress, and most brokers led with the discount — which made the deal sound too good to be true and invited harder questions.
03
Approach
We positioned it as a basis-reset acquisition, not a distressed one: separating stable rent-regulated cash flow from the retail upside, and matching the file to a lender that underwrites rent-regulated NYC multifamily at scale.
04
Outcome
$11.3M placed against a $16M purchase. The lender underwrote the sponsor's track record managing 1,000+ rent-regulated units — not the headline discount.
~50% of prior basis
Acquired at roughly half what the prior owner paid — underwritten on sponsor track record, not on the discount.
The right story, told to the right lender.
Looking at a deal others are calling distressed? Let's talk about how it should be positioned.
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