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HEARTLAND VILLAGE SQUARE

114

units

$42,105

price per unit

8.50%

cap rate

“Craig Black and Scott Nurski recently completed the sale of a 114 unit apartment complex for our office. We were very impressed with their performance. To start with, the Offering Memorandum which they prepared was very professionally done. The sale was very complex and presented many challenges, but the two of them did an outstanding job on presenting the property and then negotiating a sale in a very short time and at a very favorable price. I would not hesitate to recommend them”.
-Chuck Bloom, TIMCOR
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Challenge

The NAI Wisinski of West Michigan Multifamily Team was approached to market a 114 unit apartment community. The property was encumbered by a master lease with the neighboring assisted living facility. That agreement was about to expire and the assisted living facility was not renewing. The property had a history of flooding problems from a water discharge area, and several of the units were not rentable under the circumstances. The challenge was to find a buyer within 45 days, who could close and take over the operations within the same time frame, and have a workout plan for the flooding.

Action

Using our knowledge of market area, as well as regional and national buyers, we generated five offers within 10 days. As a protective measure, we were able to engage a property management firm willing to take over operations temporarily, in the event that they would be needed. NAI worked with the seller in selecting the best qualified buyer for the transaction. Our team assisted them in bringing together engineers, surveyors and building contractors in order to meet a short due diligence requirement.

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Result

An all cash sale closed on the day before the Master Lease expired and the new owner’s management team stepped in and seamlessly took over. The sale price was for a substantial amount more than the values proposed by other brokers. The end result was an ecstatic seller, who couldn’t believe how much the property sold for, nor how quickly the valuation, marketing, negotiating and closing processes went. The buyer was thrilled to be able to add to his existing Grand Rapids portfolio at a price that gave him the room to create additional value through property improvements and repositioning.