Alex Rodriguez and Barbara Corcoran Team-Up in NYC Real Estate Venture
Power player in real estate, Barbara Corcoran, and Major League Baseball legend turned real estate investor Alex Rodriguez, have teamed up in a joint venture to acquire off-market rental properties in NYC’s neighborhoods.
The duo met on ABC’s show Shark Tank, and are setting sights on properties averaging 50 units or less, and are interested in inviting other investors on a project basis. On June 4th, the two purchased an NYC property to kick-start the collaboration.
Corcoran says that the building is a phenomenal residential property in the East Village and with 21 units, has ample space for great returns and a long term upside. She is one of the most successful entrepreneurs in the US, and founder of the Corcoran Group in 1973, with a loan of $1000, which is now a billion dollar company. Rodriguez is the founder of A-Rod Corp, which manages and originated investments in various industries.
Both Rodriguez and Corcoran know the neighborhoods of NYC well, and are perceptive of up and coming areas. They will be able to add value to the properties through smart innovations, and focus on numbers and larger market trends.
Rodriguez says that his aim is to acquire high-potential assets to develop and identify. These include undervalued and undermanaged neighbourhood buildings, misused land, etc.
According to Corcoran has predicted growth in the buyer’s market in NYC in 2019. This is the best time to purchase real estate, as there is less competition, rent is strong and vacancies are scarce. Many prospective buyers are waiting for the questionable markets which pressure the rent to increase.
Both A-Rod and Corcoran are focused on buying out great properties, analysing them and then closing them against the competition. She aims to build a portfolio of exceptional buildings.
Both real estate mavens are focusing on the neighborhoods with the largest upsides. These include Inwood, in East Harlem which is 100 blocks from the city. It is highly undervalued and has train access. Morningside Heights has been thriving through the rental business brought by Columbia University.
The Brooklyn neighbourhood of Red Hook is another such property which is allowing families to move in through Ikea. This had brought Ample Hills ice cream factory, Hometown Bar-B-Que and Fairway Market into the neighbourhood.
Of the Greenpoint neighbourhood in Brooklyn, Barbara claims that it could be the next hipster chic Williamsburg. The area has great transport connectivity through the G train and ferry, with the waterfront under development. In South Bronx, Mott Haven is under creation. Brookfield is a building of 1200 units which anchors the neighbourhood, and is connected by the 4/5/6 subway service.
Rodriguez maintains that this is the best time to invest as returns are set to be much higher in the undervalued neighborhoods of NYC where rental possibilities are galore.
