Case Study – Queen Anne 11-Unit with View and Penthouse
Key Deal Points
- Hillside House, 15 Ward St, Seattle
- Seller Financing Terms: 3 yr, 30% Down Payment
- 11-unit with View and Penthouse
- Sale Price $3.05M
- 94% Cap Rate at closing
- Represented Seller & Buyer
Candice, Dea and Chris exceeded my expectations in their competence, professionalism, integrity and aggressive marketing strategy. I did not expect to get my building's value due to Seattle's pro-crime, anti- landlord political climate. But thanks to Candice's team and contacts, they found the best buyer to take advantage of seller financing. I highly recommend Candice, Dea and Chris to anyone concerned about selling their apartment building in these challenging market conditions.
- Lou
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
In a competitive real estate landscape, the choice of brokerage team can make all the difference. The Seller sought our expertise after having previously engaged another brokerage team to sell the property, but after six months, those efforts were unsuccessful. Known for our expertise specifically in the Queen Anne market, proven by the successful sale of 45 buildings within this coveted submarket, our team brings a wealth of expertise to the table. While the Hillside House is in a prime location with spectacular views, it also had low rents and income. The main challenge was marketing a low cap rate property in a volatile market in which interest rates had doubled in the last 18 months. With the right strategy and approach, our Lee Multifamily team was confident that with the right marketing, a buyer with vision to remodel the property would be found.
Action
Recognizing the untapped opportunities overlooked by previous brokers, our Lee Multifamily team identified a couple key areas that could be implemented. The Lee Multifamily team created a well-crafted, targeted marketing campaign and spotlighting a Seller-Financing scenario as a viable solution to bridge the gap between the Seller’s pricing expectations and market feedback.
One of the team’s arrows in the quiver is the targeted rooftop calling initiative. This approach proved effective in the case of Hillside House, where our direct calling campaign led us to the ideal buyer. Notably, this buyer already owned two buildings within the Queen Anne area, and had purchased a property listed by our team previously.
Result
Through a combination of market insight and proactive strategies, not only did the Lee Multifamily team find the right Buyer, but our team also maximized pricing for the Seller. Our previous experience structuring Seller Financing was critical because this sale structure is more nuanced, given an ongoing relationship between buyer and seller. Since our team had worked with the buyer previously, we were able to supply our client with references from the previous sale adding confidence that the buyer had been performing on his other investment.
Through several series of negotiations, the Lee Multifamily team was able to bring both parties to reach an agreement with Seller Financing terms that worked well with both parties.