A client recently contacted us to ask our opinion about a couple of unsolicited offers he had received on his 8-unit apartment complex. The first offer was for $1,100,000 and offered a quick closing with what seemed to be a qualified Buyer. The second offer was from the client’s property manager, also well qualified, who thought that the offer was too low and offered $1,200,000. After an analysis of the property, operations and market comparables, we suggested that the property might be worth closer to $1,600,000.
The client was shocked and truly needed to be convinced of the fact that the property, current and potential rents and market comparables supported this idea. We obtained the listing and after completing all of the items in our “Exclusive Representation Marketing Commitments” and exposing the property to literally thousands of potential Buyers we were able to produce a strong offer, within 10 days. The qualified Buyer closed the escrow 50 days later for $1,575,000. This is a perfect example of how expertise in our field, our top notch market data, and an unparalleled marketing effort put hundreds of thousands of dollars in our client’s pocket.
A client had a desire to move equity out of an apartment complex into a less management intensive commercial property closer to home. Everything they had heard was that there was “nothing good on the market” and that it’s “very hard to find good commercial property these days.” We evaluated their apartment property to determine the client’s net equity and discussed the strategy of a 1031 exchange out of the apartment complex into less management intensive commercial property. We shared with them numerous properties that were actively being marketed, but none seemed like a fit.
Through our resources and contacts, we were able to show them a multi-tenant commercial property that was not actively marketed, but was a perfect fit for their exchange. It was the right property type, location and price and the client achieved the ultimate goal of moving equity into a more desirable property. When your resources go beyond what is currently “on the market,” you dramatically increase the chances of achieving your goals.