5301 Hill Avenue, Toledo, Ohio
Over a period of a few years we were asked to provide two different BOV’s and marketing plans to a servicing company for a distressed apartment complex. The property was ultimately listed with a competitor with whom the servicer had done a prior transaction. When the competitor was unable to bring the property to a successful close, we were asked for yet another BOV and marketing plan. While we were very close to turning this down, we decided to make the effort one more time in hopes we would get a shot at the work.
We were chosen as the listing company and packaged an offering memorandum and did a campaign to our extensive database. We had suggested listing this product at $2.9M with the idea it would sell in the mid-$2 Million Dollar range. The client insisted we list it at $3.2M and we agreed to shop the market with the understanding that we would work this hard and review our activity/feedback after 60 days and reduce the price if necessary. The initial interest level was high, but the income/expenses and overall condition held buyers back. Based on the feedback we received and provided to our client, they agreed to reduce the price to $2.7M. We took this back to our database and set a call for offers date in 30 days. We generated ten very strong offers from Buyers all across the country. We went back to all and explained the high level of activity and stated that rather than trying to pick a winner, we would like to give everyone an additional week to come back with their best and final. All ten resubmitted and the client chose a group out of Michigan as the winning bidder.
The number of prospective buyers that we were able to generate gave our client a lot of leverage. It also allowed the client to be very selective. All of the best offerors were interviewed and their ability and probability of performing were taken into consideration in selecting the winning bid. We were able to exceed the targeted price and demand a quick close. We had a very smooth transaction, moving thru all due diligence within 15 days and closing within 45 days.
"Thanks again for your work on the Park Terrace."
- Buyer - Park Terrace Apartments Ohio, LLC