Improving, Adapting, and Wiping Off the Light Switch

We stabilized a mixed-use asset during Covid and positioned it for a successful sale.

Inside Your Circle of Competence

SuperUSA, Inc (Hakan Yildirim and his partner Hatem) had owned their property at 470 Sunrise Highway in West Babylon for a few years, but came to realize that residential tenants just weren’t their cup of tea, and they were looking to trade into a different asset class.

They were referred to me by a highly successful residential agent—who, to his credit, knows that commercial real estate is outside — as Charlie Munger calls it — his “Circle of Competence.” Their mixed-use property happens to be in the bullseye of our Circle.

Back to Basics

This one came down to the basics: Two apartments over three commercial storefronts (two vacant), in the middle of your average global pandemic, so there’s that. While the building had solid bones and good location, it was under-earning and lacked momentum. It needed fresh ideas, new energy, and a simple tune-up.

We started with managing expenses and tackling the vacancies to substantiate the value, as well as making the property financeable. Firstly, I identified small MEP adaptations that enabled independent control and accurate expense allocation among the vacancies. To his credit, Mr. Hakan (we’ve settled into a friendly and polite “formal first-name” way of speaking) recognized the value and made the investment as recommended. We then rented one unit to a young attorney launching her solo practice after growing away from family practice. The second unit — now prepped and ready to go — ended up being occupied by the eventual buyer, who used the opportunity to relocate his insurance business.

At the same time, I’d identified and illustrated a clear value-add opportunity for investors: the potential to add a third apartment on the 2nd floor. It was a logical addition—almost obvious in hindsight, but sometimes it needs a trained eye to spot it and lay it out.

The Results

We assessed what was holding the property back, put a strategy in place, and did the work to make it market-ready. With stabilized income and a clear path to added value, the property attracted both end-users and investors. The buyer was, in fact, an owner-partial-user; occupying the last empty unit to where he relocated his insurance business. With that as their focus, they ultimately didn’t pursue the expansion, however; it helped position the property as more than just a sleepy mixed-use deal (and who knows what’s yet to come!)

Mr. Hakan wanted to move on from residential tenants, and we helped him do exactly that—freeing him up to focus on meat-and-potato retail investments that align with his long-term strategy. We continue to support him as he builds his portfolio with properties which fit that vision.

What's your vision?

We’re ready to listen and learn about your vision – or even help you define it. Let’s talk about what’s possible.