Background
The client operated out of the property for many years, relocated his business to a new property in the area and was now leasing the property out to several different tenants. The client was fed up with the management headache of dealing with multiple tenants, repairs, and flakey contractors.
The Problem
The property was complex: several unique buildings, two permitted spray booths, pronounced deferred maintenance issues and many tenants with below market rent. Since the client had owned the property for so long he had a very low tax basis on and would have to pay a substantial capital gains tax with an outright sale. The client was making a fair amount of income on the property he was familiar with the building and tenants and did not need to sell, he wanted top dollar.
The Solution
The Crocker | McKean Team came up with a three-tiered marketing approach to make sure that the client was not going to leave a penny on the table and have as much equity for his 1031 exchange as possible. The team crafted a marketing strategy that would appeal to developers, owner/users and investors alike. The team addressed all know property issues upfront to make sure not to waste time in escrow. The team marketed the property persistently and patiently, waiting for the right buyers to come along.
The Results
After hundreds of calls, thousands of emails and over a dozen of tours, the team finally found buyers. The team avoided any retrading by having multiple offers on the table. The property sold for record pricing.
The team later helped the client close on one of his several 1031 exchange up legs that would increase his cash-on-cash return by over 75%.
