It seemed like a search for a four-leaf clover.
A client came to us with cash she wanted to invest in a four to six-unit apartment building. She’d had her eye on a property of that kind listed by the Duke Company, but lost it to another buyer. Duke associate Dave Tesch sensed her disappointment and offered to help find the apartment property that fit her investment need.
That need was both specific and rare. The buyer not only wanted a building of four to six units; she also wanted it located in a precise area—an area, as it turns out, where there are very few small apartment buildings for sale. Complicating the search: the database available to Dave had no information on many of the smaller apartment properties in the buyer’s designated area.
Quickly Dave discovered that the few apartment buildings on the market didn’t meet the buyer’s criteria. So he rolled up his sleeves and set out on an intensive search for the elusive match. He sent letters to owners of buildings similar to the one he was looking for, letting them know he represented a ready buyer. He drove the streets. He scanned aerial satellite maps. When he found a property that seemed suitable, he searched out the owner’s contact information and asked if they would like to sell.
After almost seven months, one of his phone calls paid off. An owner of a four-unit building in Fraser was willing to sell. At closing the property sold for $198,500—just shy of $50,000 per unit, a very strong selling price for the area. The seller was happy. And the buyer knew she had a rare find.
She’s not the only investor asking us to find apartment properties for them. At the moment, their demand outstrips the supply. If you own an apartment property, large or small, now may be the time to realize a very good sale.
Contact Dave Tesch at the Thomas Duke Company to discuss how your property might be some buyer’s four-leaf clover. Phone 248.476.3700 or email dtesch@thomasduke.com.
