We have always specialized in working with clients whose buildings did not sell. There is really only one question. Why? Is there something you as an owner can do or is there something my broker might have suggested that would have helped?
MARKETING MATERIALS
I always provide a custom OM or OFFERING MEMORANDUM. This is essential to the marketing of multi-family properties.
It should contain pictures, financials, a rent roll, and comparable sales as well as rent comps to justify not only the asking price but making a case for the existing rents being at the market or below and showing how other local owners are getting higher rents.
SPRUCE IT UP
Some buildings have a better curb appeal than others. I know this sounds like residential real estate, but many times a buyer will drive by a building where the numbers from the OM work, but the look is not what they are seeking. It is usually cost-effective to clear debris, maybe some paint (even trim paint) can make a difference. You must ask yourself, “Would I buy this building”. If not, what would you change?
GETTING THE WORD OUT
I always combine email marketing with my extensive list of former clients and owners as well as adjacent buildings to let everyone know that the building is for sale. Since we don’t use signs, a little creativity can pay off. Email blasts to other brokers, social media, and commercial websites such as Loop Net Co Star and Apartment buildings .com. postcards and phone calls to adjacent property owners can help locate a buyer.
I once had a building in escrow that was falling out, but a few calls to local owners turned up a gentleman who owned an identical building two doors down and was also nearing the end of his 45-day identification period for his 1031 exchange. Needless to say, it was a perfect match.
THE RIGHT BROKER
Are you working with an apartment specialist? Is your broker familiar with the area where your building is located? Has your broker sold other properties around yours? Does he or she have a good client base? The right buyer for your building is out there, but does that buyer know you exist?
What we at PRS PROPERTIES CAN DO. We can discuss with you the current rents in your area and supply you with comparable rental prices for similar properties. Before you hire a manager, make sure the compensation is fair to you! We can also look at your building for changes that might allow you to get a higher value in order to create value without huge expenses for your building. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.
We always have many investors who are looking for “as-is” properties and are willing to purchase with low rents, a moratorium, or even with a problem tenant in place. We have put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are in 1031 exchanges and need to identify a replacement property before their 45-day identification period runs out.
Should you decide to put your property on the market, we will put together an aggressive, targeted, and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.
Remember – KNOWLEDGE IS POWER!
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