555 Oak Street
555 Oak Street
After inheriting this property, which had been left with major deferred maintenance (requiring up to $150,000 in capital contribution), the seller came to us to determine what they should do.
Instead of remodeling, the property the seller decided to sell “as is,” since they could achieve a good value for the property and exchange it into a distressed out-of-state property that would return a higher cash flow.
Strategy:
The strategy was to source a buyer who was looking for a value-add opportunity and willing to make some significant capital improvements.
Execution:
We marketed the property to local investors, our database of pre-screened value-add buyers in the Los Angeles area, and nationally leveraging Marcus & Millichap’s network to find the right person for this property.
Outcome:
How did we do? Here are the results:
- After attracting significant attention and offer activity, we screened several of the more qualified candidates which led to the selection of a local buyer who owns several properties within walking distance of the property.
- The buyer paid eight percent more than all other offers due to the high offer activity and potential value they saw in the property.
- Upon close of the property, a desirable distressed asset located in Florida was sourced for the client after contacting several agents in offices around the nation.
- We guided our seller through the entire 1031 exchange process which led to a smooth close of the distressed asset well within the time allowed.