Centre Pointe Apartments Case Study
Centre Pointe Apartments
7401-7439 NE 13th Ave
Vancouver, WA 98665
This sale prosed numerous challenges. Among them, low rents produced a very aggressive CAP rate. The property was also in the process of being turned around from previous poor management and had an owner that did not want to put any money into the property. Additional, the property had a less than desirable location being located next to RV Park and across from a mobile home park in Hazel Dell submarket of Vancouver, Washington.
SVN – Imbrie Realty was hired to list this property for an out of state owner and took it to market immediately, as we always do, which resulted in ten offers on the property in the first week! After creating the competition for the asset and conducting a “best and final” round, the seller chose the best offer which was well above the list price.
We were able to find a buyer who already owned property in the area that was able to justify the highest price. At that time, Hugh and Carson each separated their interests, representing each party separately – Hugh represented the sellers, and Carson represented the buyers. Being able to show the buyers the upside potential in rents and implementing RUBS, proved to be the value-add opportunity they were looking for. Knowing the competition for the asset was fierce helped keep the buyer’s price stable throughout the transaction and they did not come back for any adjustments. Following inspection and a few days prior to the appraisal walkthrough, two of the units flooded which resulted in the seller having to file an insurance claim to repair the units. This process delayed closing approximately 3 months. It was just a few days before the buyers 1031 exchange drop dead date was approaching when we all had to kick it into high gear, help the manager coordinate with the renovation company to meet the exchange deadline and make sure the seller, buyer, renovation company, insurance company and title company were all lined up to close on time. The transaction ended up closing on the final day of the buyer’s exchange deadline with 10 minutes to spare.
In the end, the buyers were happy to complete the acquisition with good terms and significant upside in the property, and the sellers finally closed the transaction with terms that they knew were fair, knowing the competition and market had set the highest price for the asset, maximizing their profit in the sale of the property. This is a win-win transaction that can only be accomplished through doing business the right way, which seems to be rare in the marketplace.
Knowledge of the market, sales process, and negotiation is mandatory
Knowing how to structure a deal and present any issues found during due diligence is essential
Driving competition is key to getting the highest price as a seller
Excellent communication regarding client goals is a must
A broker who is willing to go above and beyond to help drive a transaction to close can be the key to closing a transaction
Clients should have an individual Broker to give them clear guidance and advice, even they are at the same firm