Carlton sells out 225 E. 57th

Real Estate Weekly, May 29, 1996

The property at 225 E. 57th Street is a 250-unit luxury high-rise apartment which was converted to co-op ownership in the late 1980s. After foreclosing on the original sponsor, the CrossLand affiliate assumed a limited sponsor position with respect to the unsold shares. In 1994, the underlying mortgage was refinanced by the Dime Savings Bank and Carlton was retained to engineer a full-scale on-site marketing campaign.

Spearheaded by Carlton's residential sales director, Mona Hamburger, Carlton devised a two-fold marketing strategy to accomplish the bank's two primary objectives. The first was to develop an effective marketing campaign which would allow Cross Snow to maximize the value of the vacant apartments, and the second was to develop a plan to sell the rent stabilized occupied apartments for the highest possible price. Both had to be accomplished under the watchful eye of a tough, sophisticated Upper East Side board and a building whose reputation had been somewhat tarnished due to the prior sponsor difficulties.

Together with its advertising firm, Carlton developed a marketing campaign promoting the building's superb location and affordable price. The "It's All Within Easy Reach" marketing campaign hit home with buyers, and all 54 vacant apartments were sold in 10 months at full market value.

For the occupied apartments, Carlton utilized its Carlton Reoffer Program, which resulted in outstanding results. An amazing 53 out of 69 rent stabilized tenants and shareholders purchased the tenanted apartments and the balance was sold to individual investors. This once troubled co-op is now completely sold out, with over 75 percent of the apartments owned by owner-occupants.

The Carlton Group, Ltd. has sold in excess of 5,000 vacant, decontrolled, and rent stabilized co-op apartments in the last five years.