SARATOGA PALMS APARTMENTS

THE CHALLENGE

The Holden Group was exclusively retained by a private syndication group to sell their 56-unit apartment building located in Las Vegas, NV.  The owners had purchased the building in 2012 for significantly less than their target disposition price.  The Seller demanded premium pricing for his property, even though the current rents were low, and the expenses were very high due to an increase in maintenance at the asset.  The seller entrusted us to bring him an offer from a qualified Buyer for a current CAP rate significantly lower than the local market comparables.

THE SOLUTION

After reviewing all the data, The Holden Group developed an effective business plan which involved:

• Producing a detailed market analysis to determine the properties upside potential
• Creating a comprehensive and strategic rental survey to show the assets future potential
• Interviewing Property Management firms to compare future expense projections
• Creating a detailed profile of Buyers to target for the sale

After assessing all potential reservations that a new Buyer would have for this property, we created a specific and targeted plan for the new owners’ operations over the next 12 months.  In conjunction with the top Property Management team in Las Vegas, we were able to show the prospective Buyers what their true returns would be at the property.  These returns would be far better than the building had been historically operating.

THE RESULT

By Utilizing our Marcus & Millichap National Platform, we were able to procure a Buyer from Los Angeles, California who saw the true potential of this asset.  With a short due diligence period and aggressive financing terms from Marcus & Millichap Capital Corporation, we were able to close escrow at the Sellers premium pricing.  After six months of operations, the building has exceeded our conservative projections and the Buyer is actively looking to purchase more buildings in Las Vegas now.  The Seller was so pleased with the diligent approach our team took in evaluating the assets future potential, that they have requested our help in redeploying their capital from the sale back into the Las Vegas Market.

For more information on this specific deal story, please contact Drew Holden

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