1159 Armacost Avenue
1159 Armacost Avenue
An experienced owner/developer, our seller in this case purchased this property with the intent of converting the building into condominiums.
The property itself already had a tract map in place, and the units were in great condition. The seller was not maximizing his potential return on equity, though, only realizing about a two percent annual return.
Strategy:
After considering all the options, and an understanding that the condominium market in this particular area had hit a standstill, we determined that it would be best for the seller to exchange into a larger property with a higher return on investment.
The strategy became to source a buyer that recognized the long-term value of acquiring a property at a premium, with a potentially very profitable exit strategy. The last step was to find an “upleg” suitable for our seller.
Execution:
The property was proactively marketed to local buyers who also owned class-A properties in class-A locations. We also marketed nationally, through relationships and advertising, to ensure that we were comprehensive in getting the right eyes in front of this property.
Outcome:
How did we do? Here are the results:
- After two months of marketing, several offers had been received.
- Through screening, communications, and negotiations with all potential buyers, the final choice went to a wealthy businessman who paid all cash at one percent below asking price.
- After closing, and within the exchange period, we secured a 16-unit multifamily property in the class-A area of Westwood (which met our seller’s exact needs and goals).