Case Study – Wallingford Part Apartments
Key Deal Points
- 3801 Wallingford Ave N, Seattle
- 7 Units
- 3 Non-Contingent Offers
- Sold at $30K Over List
- All Cash Buyer, Non-Contingent Offer
- On Market to Closed in 47 Days
After a second successful apartment building sale, we continue to be pleased with the Lee & Associate’s team of Candice, Daniel and Dea. They lead us through the financial analysis, marketing, and escrow phases of the sale. We received several quality offers. They helped us navigate through the selection process to pick the most reliable party to achieve a completed sale. This great team always kept us informed and quickly responded to all our questions or concerns through each phase of the process. We enjoyed working with Candice, Daniel and Dea and will continue working with them on future transactions.
- The Hoover Family
For more information regarding this case study, please contact:
Candice Chevaillier, CCIM
Principal
D (206) 773-2694
cchevaillier@lee-associates.com
Daniel Lim
Vice President
D (206) 773-2692
dlim@lee-associates.com
Dea Sumantri
Associate Vice President
D (206) 773-2680
dsumantri@lee-associates.com
Chris Larsen
Associate
D (206) 773-2695
clarsen@lee-associates.com
Challenge
Wallingford Park is the second building in the owners’ portfolio that they have entrusted our team to sell this year. The first sale was a tough act to follow, in which our team created a competitive bidding environment on a Mercer Island property which with 13 bidders, escalated $400K over the asking price. Similarly, this building was in decent shape but the rents were low, which at the list price was only a cap rate of 2.66%. In a market in which investors are predominantly looking at current returns of 4% or higher, our team needed to find a creative way to sell the asset while still commanding top dollar.
Action
The Lee & Associates Multifamily Team made productive time out of the compliance with the recently passed ordinance of “Notice of Intent to Sell.” to gather a very thorough due diligence package of materials and create compelling imagery and marketing materials for the property.
Within the first week on market, we received 50+ inquiries and a full price offer. While the building was fully occupied, it became clear that a tour of at least a couple of unit interiors would be essential to be able to differentiate the numerous qualified buyers that were coming to the table. We worked with the property management company to design a limited access tour of just two units and the common areas for select buyers.
Result
By creating a discrete access, along with a very complete due diligence materials, interested buyers were able to get comfortable with removing contingencies even without a full inspection of the building. This is particularly remarkable due to the age of the building. In the end, our team brought forward three solid offers on the call-for-offers date. The chosen buyer offered $30K over the list price, all-cash and without a physical contingency and a 30-day close.