Case Study – Magnolia and Wallingford Portfolio
“I first met Candice at a Rental Housing Association Spring Workshop, where she was a presenter at the event. It was clear that she had significant experience with selling smaller apartment buildings like ours. It was time for my wife and I to simplify and so we arranged to meet Candice and her colleague Daniel. They put together an extensive valuation for both of our properties. Though at first, we were hesitant to market both of our properties at the same time, we soon saw the benefits of their recommendation to proceed with sale of both buildings in tandem. Candice and Daniel navigated the unique circumstances of each sale very well and still aligned the closing timelines. It was refreshing to see their can-do attitude when a few challenges arose. They not only presented solutions and clear recommendations, but they also stepped in an assist in managing several contractors for few projects that needed to be completed prior to close. Their positive and proactive approach put us at ease that they had things handled. We are happy to recommend Candice and Daniel for their creative problem-solving to tackle any issues that may arise and for delivering great results.”
-Dick Pakko
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
Dick and Janet were in their golden years and looking to reduce the time they spent managing their apartment buildings, a triplex in Magnolia and a duplex in Wallingford. They knew they needed to simplify but thought of putting their properties on the market seemed overwhelming. The couple needed a simple and clean solution that preserved their capital and transition them into a less management intensive and more cashflow oriented investment.
Action
Identifying the ultimate goals of simplicity and cash flow for Dick and Janet, Candice and Daniel helped them explore different exit strategies that would address their desire to minimize management responsibility and increase cash flow returns. Candice and Daniel then crafted a team, comprised of Dick and Janet’s attorney and accountant as well as introducing several local 1031 Exchange resources, one to facilitate their 1031 exchanges, and the other to work with Dick and Janet to evaluate Delaware Statutory Trusts, a form of real estate investment that often offers higher returns than owning smaller apartment buildings. With a solid team in place, guiding the couple, Candice & Daniel created a simplified process and clear marketing timeline to reduce the stress of selling multiple properties at the same time.
Result
Collected multiple offers (3) on the Magnolia property within the first two weeks of marketing and pushed pricing over list price.
Candice & Daniel thoroughly assessed buyer motivations and track record to recommend a qualified buyer with surety of close
After the initial inspection in one of the buildings, turned up some issues related to outdated electric wiring on the turn-of-century building, Candice and Daniel were able to keep the buyer committed to purchasing the building by taking on the project management role coordinating contractors to complete repairs and removing the projects burden from the couple.
The team orchestrated timelines to allow for closings to be considered simultaneous, allowing the Dick and Janet to reduce transactions cost and maximize exchange proceeds for their up-leg purchases.