Creative Marketing to Maximize Price in the Middle of the Pandemic.
The Property: Cambridge Court Apartments, Waxahachie, TX
Oman Management Purchased Cambridge Court Apartments from us in the Summer of 2008 just before the Great Recession hit. (Great timing, right?) We stayed in regular communication after the purchase. They self-managed the asset from California with one part-time manager and maintenance man. There were many ups and downs throughout their term of ownership. Whenever they faced a significant challenge we would meet and discuss solutions. At one point, several years into their ownership, they were having a difficult time getting occupancy and rents to market averages (operations were suffering). We devised an incentive (bonus) plan for their staff that got them back on track. We regularly helped ownership with vendor referrals and submarket reports for over a decade. When their first loan came due, they were having a difficult time refinancing because of their age (total ageism right?). We placed them with Bank Financial as they were new to the market and hungry for deals. Oman Management got a great loan that was mutually beneficial for the bank and ownership. A few years ago, they stated they wanted to sell after the Mrs. Oman turned a certain age (I am keeping that number confidential to protect my health and safety). We provided a valuation and the owners stated they wanted to achieve a price that was well above our valuation at the time. We provided a business plan to achieve that price goal and Oman Management executed. There were more challenges along the way, 1) A large employer across the highway had a material round of layoffs which plummeted their occupancy to under 80% at the end of 2019 2) When they got the occupancy back up and they were ready to sell the world got turned on its head. The Pandemic caused most owners to pull their properties off the market if they were being actively marketed and any properties that were about to hit the market got put on pause.
Having gone through a couple of down cycles we were not afraid to market a property during a perceived “bad time”. We pulled the team together and discussed the best way to market the property. We would put together a professional virtual tour, which we regularly did for most of our listing anyway, accompanied by a drone video and manager interview. We grilled the manager with all the questions we anticipated a buyer would ask. We gathered all the diligence a buyer would likely request prior to marketing the property and had a very responsive Seller if we had any additional questions or diligence requests (there were not many, just updated financials).
Within the first week of marketing the property, we had two offers the seller would have accepted. We assigned a call for offers date one week later and received 17 offers with 7 offers at or over the whisper price and 11 with non-refundable earnest money.
It was in 2007 when we met Todd Franks… In 2008 he showed us a 52-unit apartment complex and as first-time owner/manager we purchased the property. Thanks to his guidance and encouragement we went on to enjoy a highly successful and personally fulfilling 12 ½ years of ownership. 2020 was the year we set our eyes on selling, and we put the property on the market right at the beginning of the COVID-19 pandemic! To everyone’s surprise we had 17 offers within the first two weeks of its listing and a “best and final offer” rally which brought us more than our asking price in the third week! The Greystone Investment Sales Group under Todd’s leadership brought together a win-win for buyer and seller, along with the excellent escrow/legal team at Fidelity Title in Dallas. We would recommend to all of you who are looking for a highly qualified team of professionals to contact Todd Franks at Greystone!
About the author:
Todd Franks is the co-founder and Executive Managing Director at Greystone | Investment Sales Group in Dallas, TX. If you want to learn more about our Off-Market Opportunities, Multi-Family Listings, Land Sale Listings, Property Valuations, Debt Platform, or meet for coffee to exchange value-add ideas, contact our office:
Greystone Investment Sales Group
6320 LBJ Freeway, Suite 228, Dallas, TX, 75240