PINE LAKE VILLAGE APARTMENTS
Newaygo, MI
112
UNITS
$45,089
PRICE PER UNIT
8.77%
CAP RATE
We have been in the real estate business for over 25 years. We have worked with many, many real estate agents over the years. We have worked with the NAI Great Lakes multifamily team and are extremely happy with the job they did. They were extremely knowledgeable, professional, and "got the deal done." As sellers, we are very happy and I would recommend them to anyone wanting to buy or sell a multifamily property.
- Kathleen Culp, B&A Development
Services Provided: Pre-Sale Positioning and Advisory Services, Marketing, Negotiation, Successful Disposal
CHALLENGE
The NAI Wisinski of West Michigan Multifamily Team secured an exclusive listing to sell a 112 unit, market rate apartment community in a small rural town. The property is a large asset for such a rural property location, and thus limited the potential buyer pool. We needed to locate a well capitalized buyer of market rate apartments who was willing to invest in a tertiary market. To further compound the challenge, the property offered market rate rental housing, while most assets in similar tertiary markets are subsidized properties. There is little crossover between market rate multifamily investors and low income/subsidized multifamily investors. The majority of investors in similar markets were not looking for market rate assets.
ACTION
Using our extensive property and contact database, we contacted all owners of market rate multifamily assets over 30 units in size that are located in similar rural areas. We also contacted owners of subsidized housing, in case there was an investor willing to cross product types. . We also networked the vendors and influencers in the multifamily investment realm, such as CPA’s, attorneys, financial advisors, lenders and wealth management groups. The goal was to identify any other active buyers who may not have shown up on our radar yet.
RESULT
We generated multiple offers from these marketing efforts. Ultimately, the networking and marketing effort to vendors and influencers helped identify an investor with a need to place proceeds from a Section 1031 Tax Deferred Exchange. We assisted in negotiating favorable financing terms for the buyer with a local lender, which allowed the buyer to meet her cash flow requirements at a sale price that satisfied the seller. Both the buyer and the seller received a positive outcome.
