MAXIMIZING SALE PROCEEDS IN MINIMAL TIME BY TARGETING A SPECIFIC BUYER PROFILE
OVERVIEW
- Miami MSA
- Walgreens
- ± 15,101 SF
- Seller Representation
- Sale Price: $9,800,000 ($649 PSF)
- Cap Rate: 4.75%
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THE CHALLENGE
The client needed to sell their trophy Walgreens property located in the Miami MSA to eradicate a bad loan and a looming balloon payment coming due in less than 30 days or face having to significantly come out of pocket to pay the loan off. Our team was tasked with selling the asset by yearend (less than 30 days) during the December holiday season. In addition, the sale price we needed to achieve to successfully complete the assignment, would ultimately set the market for the lowest cap rate in the country for a Walgreens investment sale at the time. Before we could even market the property on our national platform, our team needed to prepare a full offering memorandum for the property, complete with high-definition aerial and ground photos that met our quality standards.
OUR APPROACH
Given the immense pricing and timeline challenges in front of us, our team had to commit to a single Buyer profile that would give us the best chance of successfully completing the assignment. Pulling from our team’s 35+ years of experience selling NNN properties all over the country, we knew to focus on the flow of capital coming from New York City into South Florida. Our target Buyer would be a wealthy New York City based private investor, conducting a large 1031 tax deferred exchange. The chances were good that this investor would pay a premium for our asset, and in return our property would fill a key piece in the completion of a large 1031 exchange. Like many 1031 investors active this time of year, this investor would need to close by year end to satisfy their 1031 or 1033 exchange. So, we focused almost all our marketing efforts in the New York City market.
THE OUTCOME
Thanks to a highly aggressive and very targeted marketing campaign, our group quickly sourced a 1031 investor who sold several large multi-family assets in Manhattan, with $30,000,000 in equity in need of placement prior to yearend. Our trophy Walgreens property provided the perfect opportunity for an investor to safely park their money in a passive investment, backed by an investment grade credit tenant, in a highly desirable submarket of Miami where it would hold its value over time. Due to his time constraints, the Buyer paid full price and closed prior to the end of the year.