FLOWER APARTMENTS

THE BACKGROUND

The Client, a successful real estate investor, purchased a 40-unit apartment building in Las Vegas in 2018. After completing an extensive interior and exterior renovation program, he wanted to sell the asset to capture significant gains in equity. The Client listed his building with a qualified local brokerage house but was unable to successfully dispose of the asset. With the pandemic greatly impacting the Las Vegas real estate market, the Client enlisted The Holden Group as he needed a revitalized perspective on the marketing campaign.

THE STRATEGY

After reviewing all relevant financial data pertaining to the property and refining our marketing strategy for this particular asset, we recommend marketing the property at its previously marketed price of $3.9 million. Given the aggressive price point that the Client had to achieve to satisfy his equity partners, we tailored our marketing campaign towards out-of-state investors that have been paying premiums for stabilized assets in Las Vegas. Utilizing our synergies with previous clients and the brokerage community in California was of utmost importance during our marketing. Our team knew that personally driving prospective buyers from out-of-state and educating them on the Las Vegas market would prove valuable to our client. By creating a local and national exposure campaign for this asset, we felt confident we would achieve our Client’s goals.

THE RESULT

By implementing our strategic marketing campaign, we were able to procure multiple offers in the first two weeks of the asset being on the open market with our team. Out of the four offers we received, two were from local buyers and two were from out of state investors. After multiple rounds of negotiations, we successfully went under contract with a previous client who was in a 1031 exchange from California. To ensure we did not lose any momentum with the backup offers, we structured the escrow for a short 14-day due diligence. After a seamless transaction, we closed escrow at $3,865,000, within 1% of our list price. The Seller was delighted to finally sell the asset at his target price after months of marketing with the previous brokerage team. The Buyer is already planning on purchasing more buildings in Las Vegas as they increased their cash flow 63% during their 1031 Exchange.

<- BACK TO CASE STUDIES