Challenge:
There were a few challenges when marketing this sale.
The first challenge with this property was that the rents were low and in return, we were
attempting to sell a property with a low cap rate.
Another challenge was one of the tenants was a large dry cleaner and the lender moved extremely slowly through the approval process. After months of waiting, the bank ultimately decided not to lend on the property. Not because of the dry cleaner, but because of other underwriting concerns.
Action:
When banks ultimately decide not to lend, many deals fall apart. Instead, we went back to work. Working closely with the seller and the cooperating broker on this deal, we structured short-term seller financing to keep the transaction alive and get the deal across the finish line.
It was not easy.
Our online marketing resulted in over 6,000 total views of the listing and over 307 buyers engaging with the online information.
Result:
Ron Koenigsberg, CCIM, sold the property for $1,900,000 at a 4.26% cap rate, and price per square foot of $208.
“Most important to me, the seller has become a dear friend through this long process. Helping him get this deal closed made the entire journey worth it.” – Ron Koenigsberg, President of American Investment Properties
View more of our sold properties here.
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