Chestnut Hill Apartments
Situation
After 5 years of owning and maintaining a popular multifamily property, Stratford Management, made the decision to sell their property. The property comprised of 68 units and over 55,000 total square feet. It was in excellent condition with all new kitchens, carpeting, signage, lighting and painting. The sale was part of Stratford’s original exit strategy. They bought a deferred maintenance, low occupancy property and it was sold as a fully leased, renovated property to a new investor at the end of their 5 year mortgage term.
Process
The first step was to determine the value of the property based on a five year financial analysis, the surrounding area, market comparables and an itemized list of capital improvements. Next we established a quantitative and qualitative property package and comparison which incorporated interior and exterior photos to entice investors from other parts of the country. We developed a marketing plan to target investors looking to buy a property in the 8% cap range both locally and from out of state.
Result
The sale of the property happened very quickly. The property was on the market for only 3 weeks before it went under contract with an out of state investor. In fact, the property was so popular with prospective investors that Larkin acquired additional clients for other deals resulting in another 124 unit property being listed soon thereafter.
“Larkin Commercial was one of the smartest, most wonderful firms I’ve ever done business with. I don’t know how we could have done it without them. I would do business with them as often as possible… they’re professional in every sense of the word!”
Andrew Gordon
Chestnut Hill Apartments -Owner