Our client had executed on a change of use from senior living to apartments in Ballard. They finished all the physical renovations in 2019 and began to stabilize the property right as the pandemic hit the investment market. They had completed the business plan for the property and were ready to 1031 exchange the equity into their next project but didn’t want to leave any money on the table due inconsistent cash-flow.
After two years of working to stabilize operations the owner reached out to us to see if we thought we could sell the remaining upside story to the market. We utilized the strong leasing momentum in the spring of 2022 to prove 8-14% loss to lease on the rent roll which generated excitement with buyers looking for low-risk upside.
We leveraged multiple offers to create competition. This allowed us to select the buyer with a good price and certainty of close which allowed the seller to roll their sale proceeds into a 1031 exchange purchase they had identified while we were marketing the property.
When we purchased Etta Ballard our business plan was to convert the senior living property to apartments and sell. We finished our final construction late 2019 but the pandemic threw a wrench in our plan of stabilizing and selling in 2020. After many months of managing through the pandemic Jerrid Anderson reached out sharing that the buyers were back and buying future upside in Seattle. We interviewed several brokers and decided the Simon | Anderson team could sell the upside story best (they had just done it on a very similar listing). After 27 days on the Simon | Anderson team produced 11 offers, we leveraged their knowledge of the buyers track records to select the most qualified purchaser. The Simon | Anderson team smoothly managed the closing from start to finish and hit our deadline for our planned 1031 exchange.