When a lender first called me about a mostly vacant 41,000 SF REO industrial building in Rockville Centre, I thought the sale would be pretty straight forward. At an asking price of $1,500,000, it seemed like a bargain at around $35/SF. The property is ideally located near the LIRR in a town which has one of the top 50 public schools in the nation, according to Newsweek.
The challenge, I soon found out, was the lack of parking and the real estate taxes. It drastically impacted the interest. Most buyers said they would never have enough parking to convert the property to a higher and better use. Those who could overlook the lack of parking were deterred by the $133,000 annual real estate taxes which included $100,000 for School Tax, $13,000 for General Tax, and $20,000 for the Village Tax...
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