In talking with the trustee of the family trust who owned the property and another family member, there had been a manager in place that took their eye off the property and allowed the condition to deteriorate. Living out of state, they had not been to the property for some time and noticed their returns starting to slip. The engaged a new manager and began to address the deferred maintenance at the property, but realized there was quite a bit to do. Some of the work left was mainly exterior siding that had a significant amount of dry rot. After valuing the property for the owners, they challenged us to find a buyer who would accept the property in its current condition at a market price, while leaving it as a pocket listing for the time being. Tapping into our extensive network of clients and engaging other brokers in the office, we identified an investor who had just sold a retail investment and was looking for multifamily opportunities in the state of Oregon. We were able to walk this new investor through the reasons why this property made sense. There was still upside in rents and with an aggressive manager and capital to address the deferred maintenance, they could make this property shine again! While working through the due diligence, we uncovered a lis pendens against the property and helped both the buyer and seller navigate through the process of removing it so title could be passed free and clear of any issues.

While purchasing this at a market price and all cash, the new investor is confident they will be able to improve their yield through physical improvements with cash flow and improve the rental rates to market.