Case Study: Entering Retirement with Low-Management Investments in the Northeast

How RPS Capital Management helped a retiring client transition from a Midtown Manhattan property to passive investments in Lexington, MA, and Fairfield, CT.

CHALLENGE

Our client owned a property in midtown Manhattan that was originally used for a family business. After the business was closed, the next generation ran the property as office space for rent. As that generation headed toward retirement and the building’s deferred maintenance was starting to show, the client decided it was time to sell.

ACTION

The RPS team was called in to educate the client on the process of conducting a 1031 exchange and what low management options were available in the marketplace. The client was focused on building a portfolio that blended cash flow and long-term security while becoming passive managers, within driving distance of their home. Ultimately, the client purchased two properties in the northeast with long-term leases in place.

RESULT

The client purchased a TD Bank in Lexington, MA, with 14 years remaining on the lease and a Key Bank in Fairfield, CT, with 8 years remaining on the lease. The Lexington property sits on the premier corner in a high-end market. The Fairfield property is located steps from the Metro North station and represents a covered land play. The RPS Asset Management division continues to assist the client with lease restructuring and financing.

TESTIMONIAL

“We have been doing business with Robert Sharfstein of RPS Capital Management for over 5 years. He is extremely knowledgeable concerning real estate matters and his advice in helping us find the right properties to fulfill our needs and requirements was invaluable. He scoured the country to find the best fit of properties for us. Rob has also been very helpful in securing financing as well as negotiating a lease renewal for us. We also recommended Rob to another longtime real estate investor who similarly was very impressed with Rob’s knowledge, patience and persistence in finding them the right property. I cannot recommend Robert Sharfstein highly enough not only for his knowledge of the real estate market but also for the ease of working with him” – Leslie Porosoff