<Back

CLOSING IN RECORD TIME DESPITE DELINQUENCIES AND PRICE ALLOCATION CHALLENGES

The Result: Employing a competitive market process and traversing deferred maintenance, financial difficulties, finish variation, and high owner-occupancy, Kiser Group was able to market and sell a 154- unit condominium deconversion in only eight months, a remarkably short time frame, overcoming doubts and ensuring positive outcomes for all stakeholders.

Challenges and Solutions:

Financial challenges since the 2008 great financial crisis had resulted in deferred maintenance, the rise of monthly assessments, delinquencies, and depressed resale values. Facing the need for another special assessment, the condominium association hired Kiser Group to explore the option of deconversion and sale.

Financial struggles and owner occupancy:

The condominium association grappled with financial challenges and deferred maintenance issues, necessitating continuous increases in monthly assessments and resulting in unit owner delinquencies and diminished resale values. Exacerbating the situation was a high owner-occupancy rate — particularly long-term senior citizen residents.

Meeting the needs of the client:

To address the financial challenges and the added complication of owner-occupancy, Kiser Group leveraged the multiple competitive offers to obtain a completely non-contingent offer and then negotiated highly favorable lease-back rates for owner-occupants. This included an additional 15% discount on leasebacks for the seniors.

Individual pricing confict:

Unit variation issues made it difficult to allocate pricing amongst the units, creating a quagmire in the process of approving the deconversion and sale.

Focusing on the details:

To tackle the unit variation issue, Kiser Group created the idea of a bonus pool for upgraded units. Although allocating the pool required over thirty separate visits to the building to document unit finishes while accommodating to unit owners’ schedules, Kiser Group’s meticulous efforts resulted in a successful vote for deconversion, leading the way for the successful sale of the property.

Author:

Staff