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DRIVING A HUGE TRANSACTION FROM LISTING TO CLOSING IN 5 ½ MONTHS FOR A NEEDED END-OF-YEAR CLOSE

Result: Faced with only five and a half months to list and close an over 750-unit apartment property, Kiser Group strategically organized a methodical marketing campaign and deadlines for buyers and the seller to pull off the assignment. Despite the seller’s concerns about the tight time frame for a transaction of this size given buyer profiles and due diligence/loan approval time frame, Kiser Group was able to secure the appropriate market exposure and find the right buyer who could execute the deal.

The first month:

In the first month, Kiser Group valued the property, presented the analysis to the owner, listed the property for sale, created all needed marketing materials, and built a deal room with all due diligence documentation consisting of twenty-four (24) years of ownership data.

The second month:

During the second month, Kiser Group marketing the property. In the first week, Kiser Group had more than one hundred (100) conversations with investors, created email campaigns to more than 10,000 investors, posted the property on all applicable commercial real estate websites, and initiated press releases. In the following two (2) weeks, Kiser Group conducted more than forty (40) property tours with a call for offers date that month. From the eleven (11) offers received, four (4) were invited to a second round with final and best offers due two days before the end of the month. After interviews, a buyer was selected and a letter of intent was executed on the last day of the month, 2.5M dollars in more than the high end of the range anticipated.

The third month:

During the first few weeks a purchase and sale agreement was negotiated by the respective attorneys and Kiser Group quickly led both parties to agreement on difficult issues. A 30-day due diligence period commenced which included Kiser Group brokers personally conducting the inspections for each and every unit (no master keys, over 750 units in 46 buildings spread across 23 acres) and a lease audit of each unit. Kiser Group also coordinated the lender and appraiser during due diligence so that all needed site visitation would be completed prior to the due diligence deadline.

The fourth and fifth month:

Due diligence was completed, including all needed site visits by the lender and appraiser. The purchase price the buyer was willing to pay was unsubstantiated by sale comps, so Kiser Group spent the next several weeks supplementing marketing and due diligence material with additional market knowledge, including rent surveys and operating data from neighboring communities, as well as information on other deals in which we were involved or knew about that had not yet closed. The appraisal was completed before the end of the fifth month and all materials were sent for loan approval.

The final half month:

Loan approval was granted and the deal closed.

Author:

Staff