Achieving Success Where Others Have Failed
Seller: Private Investors | Unit Count: 8 | Price: $1,750,000 | Expertise: Value Add
THG was retained by a local operator to sell their eight-unit, bungalow style apartment community in Koreatown with in-place rents 40% below market levels. After two unsuccessful marketing campaigns, the property had a negative perception in the marketplace which created an uphill challenge for THG Multifamily, with many investors having already been exposed to the opportunity.
THG crafted a marketing strategy which:
Highlighted the value-add story which had not been comprehensively addressed in the previous marketing campaign. After conducting an in depth rent survey which included a property-by-property approach, THG concluded that market rents could be raised $150-$200 higher than what the previous listing brokers were advising.
Implemented a 45-day, well-coordinated marketing campaign that exposed the property to THG’s proprietary database of investors, many of whom had not seen the listing.
Cooperated with the entire investor and brokerage community and ultimately closed escrow with a buyer who was represented by a local real estate agent.
By doing a deep dive into the rental market and understanding the true premiums for renovated bungalow style units, THG was able to unlock additional value for its client and close escrow with 1% of List Price.