Maximizing Property Value: A Strategic Sale of 9 & 11 Green Street in Concord, NH
Introduction:
Downtown Realty successfully orchestrated the sale of a longstanding 20-unit multifamily property located on Green Street in Concord, NH. With the properties under the same ownership for nearly three decades, and rents falling below market value, our challenge was to reevaluate and maximize the value of the buildings to achieve a profitable sale.
9 & 11 Green Street represented the last buildings in the owners’ portfolio, who had a history in the textile manufacturing industry. The ownership style was hands-on, conducting much of the leasing, management, and maintenance work themselves. While the pride of ownership clearly showed through in the owners’ efforts to maintain the historic charm of the building, rental rates had dropped well below market, creating its own set of challenges.
The objectives for the sale of 9 & 11 Green Street were multifaceted and client-centric. Firstly, we aimed to conduct a comprehensive reevaluation to accurately determine and subsequently maximize the property value, addressing the existing undervaluation in rents. Secondly, we focused on strategically marketing the property to our extensive network of potential buyers, ensuring it garnered interest and competitive offers. Lastly, the overarching goal was to achieve a sale that maximized proceeds to the owners while balancing the challenges of a turbulent interest-rate environment. We exceeded our client’s expectations and concluded the sale of the last buildings in their portfolio in a highly satisfactory manner.
Strategy & Implementation:
1) Valuation and Analysis:
Downtown Realty conducted a thorough valuation of the properties.
Prepared an in-depth analysis, outlining strategies to maximize the building value.
Identified areas of improvement and adjusted rents to align with market trends.
2) Targeted Marketing:
Shopped the property out to our network of repeat customers, qualified buyers, and trusted brokers.
Leveraged our extensive database and industry relationships to attract interest.
Received six offers, showcasing the property’s potential and our strategic marketing approach.
3) Selective Negotiation:
Narrowed down the prospects to a non-contingent buyer, mitigating risks associated with the sale.
Engaged in strategic negotiations to secure a favorable deal for both parties.
Ensured a smooth transaction process, maintaining open communication between buyer and seller.
Results
Despite financing and appraisal challenges, the non-contingent nature of the buyer allowed the sale to move forward successfully. The properties were sold above appraised contract value, much to the delight of our client, marking the efficient and lucrative sale of the last buildings in their portfolio.
The sale of 9 & 11 Green Street stands as a testament to Downtown Realty’s expertise in maximizing property value and achieving above-market sales. Through meticulous analysis, strategic marketing, and targeted negotiations, we ensured the satisfaction of our client and facilitated a successful transaction.