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RESURRECTING A FAILED CONDO DECONVERSION SALE

The Result: Navigating economic uncertainty and multiple owners across several properties, Kiser Group implemented a custom allocation strategy, securing 35% over market value and fair pricing for all owners on this 115 unit condominium deconversion sale.

Challenges and Solutions:

Resurrecting a failed condo deconversion, Kiser Group faced two main hurdles which it navigated successfully with creative thinking and transparent communication:

Conflicting expectations:

Securing the vote was both critical and challenging as the association was divided among three distinct buildings, each with a different physical condition, age, and value. The prior attempt to sell this deconversion by another brokerage company failed due to the inability to negotiate value satisfactorily amongst the owners. A sale seemed impossible.

Custom allocation strategy:

Crafting a custom allocation strategy to address disparity of value across the building, Kiser Group was able to allocate fair shares appropriately to each owner, leading to the vote pass required for the sale to take place. Through open and transparent communication, Kiser Group was able to facilitate an agreement that made sense for every owner involved.

Loss of capital:

Due to the nationwide pandemic and shutdown just 10 days before due diligence closed, chaos ensued and the buyer’s equity partner withdrew, leaving a building under contract without the necessary financing to close.

Securing equity:

Kiser Group secured the appropriate extensions needed to keep the deal alive, and with just five days before the deadline the buyer finalized terms with a new equity partner, enabling the deal to close successfully.

Author:

Staff