Background
The client had owned the property for over 30 years and had moved out of state. The property manager that he knew had moved on to another life and the property had been run down and mismanaged.
The Problem
The client had problems managing an asset with so many tenants and being out of state he couldn’t check on the condition of the property regularly. He knew the property was under performing, but due to his high performing business, he couldn’t spend the time getting the property fixed up and leases up to market.
The Solution
After discussing his goals and desired outcomes, the current market conditions, and different sale variables, the client decided that he would rather sell the property on a proforma basis rather than do the work himself and peruse a 1031 exchange. The client and the Crocker | McKean Team narrowed down the type of investment in what geographic location that he would be happy with exchanging into. The team worked through many different types of 1031 exchange underwriting scenarios to make sure he was comfortable with the range of incomes and then listed the property.
The Results
While preparing the building and marketing materials for a sale, the client was approached with a 1031 exchange up leg opportunity that he really liked. The team had to act quickly to secure the up-leg opportunity, so they quickly created an off-market bidding environment for the property and selected a buyer who was willing to pay full price with the terms. The team walked through a seamless escrow process and the client got his desired up-leg.