Capturing a Westside Cap Rate in an Eastside Neighborhood
Seller:: Local Construct | Unit Count: 9 & 18 |
Price: $3,217,500 & $6,682,500 |
Expertise: Portfolio Sale of Post-Renovated Stabilized Product
THG was retained by a local developer to market a two-property portfolio of fully renovated, non-rent control assets in the emerging market of Eagle Rock. Because of the extensive high-end renovation completed by the seller, the portfolio offered little value-add potential, which presented a unique challenge as most investors were targeting value-add opportunities..
THG crafted an effective marketing strategy which:
Analyzed the market to determine the best way to maximize value was to execute a dual marketing process which offered investors the ability to purchase one or both properties.
Utilized proprietary market research and a team of senior advisors to successfully delivered a compelling investment thesis that highlighted the tremendous rent growth prospects for Eagle Rock.
Reached beyond the local investor pool and ultimately closed the portfolio with a Hong Kong based investor.
Through it deeps relationship in the ultra-high net worth market, THG generated offers on an individual and portfolio basis which allowed Ownership optionality relating to staggering the sales or divesting in one transaction. The offer activity generated by THG positioned Local Construct to sell both properties to one buyer, while still capturing premium pricing, and 1031-exchange into an out-of-state apartment community.