The team thoroughly evaluated the property and recommended a list price range of $14,000,000 to $14,500,000 which worked out to a 5.7% to 5.9% cap rate. The challenge was to seek out those buyers with the sophistication to understand a recovering Vegas market and focus on future NOI and not just the current cap rate.
Facing the double edged challenge of finding a suitable buyer who had the capability to pay cash or secure new financing, the team focused on the below strategy:
• Personally contacted their key relationships and used their extensive investor database to target strategic, value-add buyers who had the capability to pay cash for the property or be able to secure new financing in an expeditious time frame.
• Explained that shortly after closing, the down units could be rehabbed, rented and thus increase the NOI by approximately $35,000 and push the cap rate to 6.2%.
• Focused on value-add buyers who had the experience increasing rents through a thorough and complete renovation of an existing property.
The team seamlessly executed their strategy and engaged several qualified buyers. Their current relationship with Bridge Investment Group Partners helped establish credibility that they would close at the agreed upon terms. The Colliers Las Vegas Multifamily Team members sold the asset for $13,885,000 (or $70,126 per unit) which was 96% of the recommended list price from the team’s broker price opinion and . The Colliers Las Vegas Multifamily Team maintained their strong track record of closing 97% of their listings over the last 30 years.
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