In the dynamic world of real estate management, NGI has successfully overseen 2,200 units across New York City and Connecticut’s competitive markets. However, considering shifting market conditions and new rent regulations, particularly in the Bronx, our firm has made proactive, informed decisions to adapt, drawing on years of experience and industry insight.
Upon evaluating the financial impact of these evolving rent laws, we recognized that the NYC market posed increasing challenges. Our revenue model, which depends on a percentage of rent collections, faced mounting pressure, leading to shrinking profit margins. Consequently, we decided to divest from the NYC market, selling approximately 80% of our managed units and reducing our portfolio to 430.
This divestment was carefully executed to maintain NGI’s financial stability. We secured a substantial upfront payment for the management contracts. We negotiated a 10% royalty on the management fees from the sold contracts, ensuring a steady income stream for the properties remaining with their new management.
NGI continues to oversee an expanding portfolio of commercial properties across the Tri-State area.
Armed with extensive management expertise, this strategic pivot allows NGI to focus its efforts on ongoing commercial development projects. Our emphasis now is on growth through development and ownership. We are excited about the future and remain confident in maintaining our strong management record and thriving in an ever-evolving market.
Today, NGI Asset Management is your premier partner in real estate investments, asset management, and development. Founded on integrity, innovation, and insight principles, we are leaders in delivering exceptional real estate solutions and returns. Our comprehensive services cater to investors, property owners, and tenants, ensuring that every interaction benefits from our extensive expertise.