The owner of the property knew it had problems. He had tried to sell the two-building apartment complex himself but failed to generate offers over $4 million—despite its 1.4 acres on the Huron River and close proximity to downtown Ann Arbor, the U of M campus, and hospitals.
Duke Company brokers of The Washtenaw County Team, Michelle Grobler and Jim Porth, saw the problems. The 20 one-bedroom and 16 two-bedroom units rented for well below market rates and had an uncommonly high turnover rate for the area. All the units needed extensive updates.
The Washtenaw County Team was undaunted. Identifying over 30 active investors in this product type in their database, they reached out to all of them. They described the property’s potential, helping them see how renovation could transform a property with a 2.5 percent cap rate into a tremendous value-add opportunity. After gauging the interest of each investor, they followed up, answering questions and concerns.
Thanks to The Washtenaw County Team’s diligence, four of these investors submitted competing bids for the property. The seller chose the all-cash offer for his asking price of $5 million, a million more than he was able to garner in his previous sale attempt. Two months after the parties signed the purchase agreement, the sale closed smoothly.
The seller was so pleased with Michelle’s efforts on his behalf that he said, “I will gladly recommend her to potential sellers, confident that she will work tirelessly to achieve their desired results.”
Whatever the strengths or weaknesses of your property, The Washtenaw County Team has the expertise to see its potential and find a buyer looking for exactly that. Call them today.
