Alex Rodriguez and Barbara Corcoran plan to build a portfolio of multifamily buildings across New York City.
Alex Rodriguez
Real estate veteran Barbara Corcoran and Alex Rodriguez, a Major League Baseball legend turned real estate investor, have embarked on a joint venture to acquire off-market rental properties in New York City’s hottest neighborhoods.
The celebrity duo, who met on the set of ABC’s reality show “Shark Tank,” are setting their sights on multifamily properties averaging 50 units or less and said they are open to inviting other investors on a deal-by-deal basis.
On June 4, Corcoran and Rodriguez announced a joint purchase in a New York City property as part of an ongoing collaboration in the space.
“It’s a phenomenal residential building in the East Village with 21 units and ample retail space,” said Corcoran. “It has immediate great returns and long-term upside.”
Corcoran is recognized as one of the most successful entrepreneurs in the country, having founded The Corcoran Group in 1973 with a thousand-dollar loan and building it into a billion-dollar company. Rodriguez is founder of A-Rod Corp, which identifies, originates and manages investments across a broad array of industries, including real estate, sports and wellness, media and entertainment.
Each investor brings unique qualities to the project. Corcoran knows New York’s neighborhoods well, how to recognize up-and-coming areas early and how to add value through smart renovations. Rodriguez is numbers-oriented and focuses on larger market trends.
“We acquire high-potential assets that our team is uniquely positioned to identify and develop,” Rodriguez says. “Undervalued neighborhoods, undermanaged buildings, misused land — this model works in any market when you have the capabilities and drive to make your real estate outperform.”
Corcoran predicts “a great buyer’s market” for New York in 2019. “The best time to buy real estate is when everybody else is afraid, and right now, a lot of people believe that we’re at the end of a cycle,” she said. “There’s less competition, rents are strong and vacancies are low. Many would-be buyers are waiting out the questionable sales climate, which puts upward pressure on rent.”
Corcoran said she and Rodriguez are planning to build a portfolio of “great properties.”
“There are always properties for sale in New York City because we’re the city of change, but it’s very hard to source a really great property, analyze it and close it against great competition,” she said. “Everybody wants a property like that. But both Alex and I love real estate and love New York. Building a portfolio of great buildings suits us well.”
Corcoran and Rodriguez have set their sights on “a few neighborhoods with the biggest upsides.”
“We’ve carved out Inwood in East Harlem, which is an amazing little area on the island of Manhattan, forgotten for no reason,” Corcoran said. “It’s maybe 100 city blocks. It’s got great train access, and it’s undervalued. Morningside Heights feeds off the rental basis of Columbia University, has an amazing college feel, great restaurants and bars, and it’s only getting better as Columbia expands.”
She said that the Brooklyn neighborhood of Red Hook is still a “depressed area of sorts with a ferry but no train, but Ikea exposes it, and lots of families are moving in. It brings a constant flow of potential buyers because of the Ample Hills ice cream factory, Hometown Bar-B-Que and a terrific Fairway (market).”
Corcoran says Brooklyn’s Greenpoint neighborhood is “the next Williamsburg,” a hipster-chic neighborhood in Brooklyn.
“Greenpoint has great transportation with the ferry and G train and has an amazing waterfront being developed. The neighborhood of Mott Haven in the South Bronx is in the midst of being created. Brookfield, a building of 1,200 units on the water, anchors the neighborhood. It also has great transportation with the 4/5/6 (subway service).”
Rodriguez said, “Now is the time to invest because we can get much better returns. There are so many undervalued neighborhoods in New York City, and the rental potential is remarkable.”