THE CHALLENGE:
An investment group tasked The Leeson Group to sell a 5-property multifamily portfolio located in three different submarkets. The seller’s goals were to consolidate equity for a 1031 exchange out of California and to sell all the properties concurrently. Due to the portfolio’s different locations and sizes, our marketing strategy was at a crossroads: either pursue a single buyer to complete the transaction for the whole portfolio or find separate buyers who could close on their respective properties at the same time
THE SOLUTION:
- The Leeson Group structured an effective marketing plan that involved:
Studying recent sales in each property’s submarket to develop a profile of buyers to target for the sale - Connecting with interested buyers who had purchased similar assets, specifically multifamily portfolios, in order to find the right buyer or buyers who would purchase the portfolio with favorable terms for the seller’s 1031 Exchange
- Producing an exhaustive market analysis to determine the property’s upside potential
- Creating high quality marketing materials to best highlight the subject properties, including professional photography, 3D unit interior scans to counter difficulties caused by COVID-19 restrictions, and a full web and physical marketing campaign
THE OUTCOME:
Through our network of trusted buyers, we overcame our initial obstacle and generated offers on both an individual and portfolio basis, which allowed the seller to confidently shop for upleg assets during the sale process. We brought the seller multiple offers on each of the properties in the portfolio, one of which sold for over list price. Within one week of listing the portfolio, The Leeson Group successfully placed all five properties under contract to five individual buyers, all of whom were all able to close within 7 days of one another. By working with proven and trusted buyers, we achieved the seller’s goal for synchronized closings across the portfolio through clear and efficient communication.