The subject property, a unique 32 unit apartment complex built in 1939 was developed, owned and occupied by the original owner. Management and maintenance of the property had become too overwhelming for the owner and her maintenance man to continue being responsible for. The challenges presented at the time were many. The building was in serious disrepair with significant deferred maintenance issues, the real estate market and economy were suffering through The Great Recession, and the owner wanted the property sold quietly and privately since her tenants all knew her from their significant time spent together at the property. Finally, the owner wanted us to secure a buyer that would agree to allow her to remain in her unit as a paying tenant.
The investment opportunity was highly desirable due to its prime location, value add potential and significant rental upside. We determined the property’s value in turn key condition and then deducted the capital expenditures required to renovate it as part of our pricing strategy with the Seller. We knew that the property would require an experienced investor that could see the value in a unique property that was in need of significant renovations to capitalize on its substantial potential. We implemented a private marketing campaign per the Seller’s wishes through leveraging our proprietary database and clearly communicating the Seller’s wishes and the condition of the property.
Within two weeks, we generated five offers. Each buyer was countered and required to complete their inspections and submit their best and final non-contingent offers for consideration. Each buyer complied. The Buyer selected not only offered the best price and terms (non-contingent with immediate release of deposit), but more importantly, was the most accommodating to the Seller’s wish to remain a tenant after the sale. The Seller was thrilled to be relieved of landlord responsibilities while being able to remain in her home of nearly 72 years. The Buyer became friends with the former owner, completed an incredible renovation project and the property has become the gem of his family’s investment property portfolio. Lucrum is also excited and grateful to share that the Buyer became one of our exclusive Legacy Partner members.