sold

Bugge

Rent program produced dramatic upside resulting in increased buyer interest.

  • Facilitated program for tenants to renew leases at market rent
  • 1031 exchange buyer

Executive Summary

Challenge

The Seller contacted our team after reaching the “sell” point in their business plan. The property was just beginning to recover from low rents and high vacancy from the COVID-19 pandemic and was challenged by looming interest rate risks on the horizon.

What we did

We worked hand-in-hand with ownership and property management for six-weeks prior to launch incentivizing existing residents to sign new leases at market rent, resulting in 14% higher rents than existing in-place rents. Our marketing strategy focused on the property’s remaining upside after completing renovations of the remaining units.

 

The Result

With strong new leases in place, buyers could confidently underwrite the property’s upside, which allowed for more competitive financing. The result was full price offer and a smooth and on-time closing for the 1031 exchange Buyer.

Site Details

Address
6402 Phinney Ave N, Seattle, WA
Units
18
Sale Price
$5,400,000
Price Per Unit
$300,000
Price per square foot
$485

The pandemic was challenging for our real estate portfolio, but we had planned on selling our 18-unit apartment in 2022 and we weren’t sure if we’d be able to. I hear from the Simon | Anderson team on a regular basis and when I saw some of the sales they were completing at the end of 2021 I decided it was time to see if they could help me sell the building. We discussed value in December and they produced a strategy for achieving a higher price that took 6 weeks to complete before coming to market in February. After 3-4 weeks on the market, we had a few good buyers and we quickly negotiated a deal I was very happy with. The inspection process was challenging and I had to complete some repairs but we closed at full price right before the market shifted. The Simon | Anderson team delivers results and I look forward to working with them again in the future.

- Preston W.