Spotlight Company of the Month
New York Real Estate Journal
LED BY KHODADADIAN , SKYLINE IS PRIMED TO KEEP DEVELOPING CREATIVE BROKERAGE TECHNIQUES Brokering outside the box : Off-market deals , ground leases and customized canvassing
530 West 25 th Street - Manhattan , NY
MANHATTAN , NY Skyline Properties is a locally based brokerage firm that handles many different property types , including ground leases , commercial buildings , apartment buildings , townhouses , mixed-use investment buildings , mixed-use user buildings , live plus income buildings , industrial properties , and development / conversion sites . NYREJ recently interviewed founder and CEO Robert Khodadadian , about how their unique business model has enabled Skyline Properties to deliver superior results to buyers and sellers alike for over 10 years now .
Off-Market Deals
Over the last decade , Khodadadian and his team at Skyline Properties have pioneered a model of brokering deals in the off-market sector where discretion is the watchword for New York City ’ s most active real estate players . The mission at Skyline is to create off-market opportunities designed to provide sellers with complete discretion while offering buyers the opportunity to buy prime assets without going through the traditional competitive marketing process .
Focusing on off-market opportunities and avoiding the time-consuming process of obtaining exclusive listings has allowed Skyline to be more agile than competing brokers . Traditional brokerage firms often need significant time to prepare glossy marketing materials , figure out listing agreements , and solve internal political disputes . According to Skyline , these matters have little to do with what the buyers and sellers really care about . “ The market is now so competitive that many buyers simply won ’ t participate in the bidding process for traditionally marketed ‘ exclusive listings ’ from the most well-known brokerage firms ,” said Khodadadian .
Although Skyline doesn ’ t market properties on an exclusive basis , they are dedicated to delivering superior results to buyers and sellers alike . To ensure that Skyline can manage their sellers ’ expectations , they make it a priority to provide sellers with a thorough analysis of their investment property and confirm that they are comfortable with the true value of their asset in today ’ s market before they present the opportunity to prospective buyers . The foundation of Skyline ’ s success comes from making everything more personal with the buyer and seller . This is done by building close relationships with a number of buyers interested in properties and then getting in touch with sellers before a particular property goes on the market . To date , Skyline has sold $ 1.2 billion dollars in commercial real estate using this off-market model of bringing buyers and sellers into mutually beneficial transactions .
Customized Canvassing Over the last few years , Skyline has developed a customized canvassing tool , which is now available for IOS and Android phones , to enable successful transactions for their clients , and which in turn has created an organic expansion of the investment sales team . Headquartered at The Daily News Building in Midtown , the Skyline team has been spearheading New York City investment sales for discerning buyers who are ready to transact this year , but who want to eliminate the inefficiencies of traditional deal sourcing .
Customized canvassing has allowed Skyline to provide acquisition opportunities that fit each buyer ’ s unique business strategy . For instance , the Feil Organization used Skyline ’ s customized canvassing services to stay ahead of the competition and execute the purchase of 516-530 West 25 th St . Skyline allowed the buyers to focus on purchasing an asset that met their acquisition criteria as opposed to waiting for the asset to become available on the open market , thereby bypassing the process of bidding on a property with an inflated price . “ Active buyers have constant deal flow . Skyline ’ s approach is to tailor-make the process so that they only see deals that match their acquisition criteria , rather than deals they have seen a dozen times before ,” said Daniel Shirazi , EVP of investment sales at Skyline . “ In the real estate business , time is money and Skyline gives its clients peace of mind that our deals will never be a waste of their time .” Most importantly , Skyline never sends out deals to clients unless they are in direct contact with the seller and have complete control of the deal .
Ground Leases Khodadadian and his team have garnered significant attention guiding owners and tenants through the sophisticated yet lucrative process of ground leasing . A ground lease is a long-term net lease of land between an owner ( ground lessor ) and a tenant ( ground lessee ). Among other things , this arrangement allows property owners to maximize their asset ’ s potential without incurring the expenses associated with a conventional sale , such as capital gains tax .
One example of a recent ground lease deal is 236 5 th Ave ., where the Kaufman Organization inked a longterm ground lease that gave them control of the 11-story 100,000 s / f office building . Kaufman plans to unlock the upside potential through capital improvements , with full knowledge that they now control an asset that is increasingly difficult to acquire . “ An investor who ’ s looking to purchase an office property south of 96 th St . should understand that there are only roughly 1,550 office buildings that are over 20,000 s / f , which means there is a finite amount of inventory ,” said Khodadadian . “ Ground leases have proven effective ways for investors to control a building that a multi-generational owner has no intention of selling .”
Meanwhile , ground leases allow long-time building owners to keep an asset in their family and maintain stable long-term cash flow for future generations . Due to the current state of the market , ground leases are becoming the most tax efficient way for these property owners to get a deal done .
But most owners either don ’ t know anything about ground leasing or they ’ ve only heard part of the story , so Skyline created an informational website ( Groundlease . nyc ) to help educate them . Owners should understand that a ground lease is just like any other type of real estate transaction in that both sides of the table need to feel like they ’ re making a deal that works for them .
Ultimately , ground leases make the
most sense for long term property owners who aren ’ t prepared to make the necessary capital improvements required to maximize their property ’ s upside potential . Someone who owns a plot of land , a property with significant air rights and doesn ’ t want or need to build , or someone who wants to ensure that their property remains in the family to produce generational income would also benefit from considering a ground lease . While
236 5 th Avenue - Manhattan , NY
structuring a ground lease is a complex process , Skyline has developed a niche expertise that in recent years has proven to be an attractive option for owners and investors alike .
As the real estate landscape changes , and the industry adapts to current market conditions , Skyline Properties is primed to keep developing creative brokerage techniques and to maintain its strong foothold in the New York City market .