Value range marketing enhances Kaye's sale of 245 East 21st Street.

In a major commercial real estate sale in Manhattan successfully consummated using a technique known as Value Range Marketing (VRM), Marilyn H. Kaye, president of Prudential MLBK aye Realty, completed the sale of 245 East 21st Street in less than 90 days. Lewis B. Kaye acted as the consultant for the property.

The 92-unit apartment building was purchased by a Westchester investor from New York-based Pub Inc.

According to Kaye, the VRM approach replaces the fixed asking price with a predetermined range. "We decided to use Value Range Marketing because the property was a unique one to price," said Kaye. "Also, because it increases exposure of a listing and helps to create a comfortable atmosphere for negotiations to begin much sooner in the sales process."

In fact, marketing efforts for the 21st Street property led to over 2,500 calls in the first six weeks. The transaction garnered 250 confidentiality agreements and 15 offers by completion, and there was such a demand that, oftentimes, the property was shown to nine potential prospects simultaneously.

Initially, the property was listed in the $12.5 million to $13.9 million range. As offers started coming in, the range increased from $13.9 million to $14.9 million. "Although the bids were in excess of $15 million, we were most interested in locking in the strongest buyer," said Kaye.

The 17-story building is based on a 75 x 100-foot lot that is 90-feet deep. Located on the East 2nd Avenue corner, the property has 92 apartments, with many vacancies. It has two terraced penthouses, one of which is vacant, two vacant professional apartments, and an additional 2,000 square feet of vacant commercial stores on the ground floor.

"This transaction is very significant as it was the first major commercial sale of its kind to be completed through the use of Value Range Marketing in Manhattan," asserts Kaye. "Throughout the U.S., Value Range Marketing has proven successful, and I'd say that it will become increasingly popular here in the metro area. It has been used very successfully in the Residential Division of our company for several years."

Roberto Ortiz, formerly with Lee O'Dell, represented the buyer.