Selling a Eugene – Springfield Oregon Apartment Complex
How do I sell my Eugene – Springfield Apartment Complex?
How to Sell Your Eugene – Springfield Apartment Complex for
Top Dollar – FAST!
Selling an apartment complex in the Eugene-Springfield, Oregon area is much more complex than simply ordering a sign and taking a few photos. Establishing a clear price strategy, understanding your potential buyers, and marketing the apartment complex are all daunting tasks that require significant time, knowledge, and experience.
Take the Stress Out of Selling Your Eugene-Springfield Apartment Complex
Knowing who to trust when selling your Eugene-Springfield multifamily property can be scary. An apartment complex larger than 4 units requires the advice and strategies of a commercial real estate expert.
A residential real estate agent may attempt to advise you and provide you with general guidelines, but they don’t buy and sell apartment complexes every day as I do, and they won’t understand the market as I do. You wouldn’t go to an orthopedic doctor for heart surgery, would you?
I understand that you need an expert to guide you through the entire process. That is precisely what I do and have been doing for over thirty years. In that time I have built a network of commercial real estate potential investors from all over the country that I can connect with on your behalf. I will also collect, gather, and track market activity and information for apartment complexes in the Eugene-Springfield, Oregon area daily, sometimes hourly. When we work together I will provide you with the exact market information that you are looking for, tailored to your unique requirements. This alone has can save you thousands of dollars and hundreds of hours depending on the cost and complexity of the property.
You Can Get Started in 3 Easy Steps
Discuss Your Situation
Determine Your Property Pricing
Close Your Deal
Tips for Sellers:
1. Establish a pricing strategy
Taking a tour of competitive buildings will provide you with hands-on market knowledge for your property. A property tour is the best way to see what your competitors are offering in terms of lease rates, amenities and location. After studying your competition first-hand, you’ll have a better idea of how your building measures up.
While sales comparables and property tours can be helpful, investors are more concerned about the ability of a building to generate income. This is useful because a comparable building may have more amenities and lower vacancies, but generate less income than your property.
The capitalization rate of your property can be used as an easy way to compare your asset with others available on the market. The capitalization rate is the rate-of-return based on the expected income the property will generate (capitalization rate = yearly income / total value).
For example, if you buy a property that will generate $60,000 per year and paid $1,000,000 for it, the capitalization rate is: 60,000/1,000,000 = 6%. Whether 6% is good or bad will depend on comparable cap rates in your area. If a majority of buildings have a 4% cap rate, you are in the lead! However, if they’re at 7%, you may have an issue. As a general rule-of-thumb for commercial real estate investors: ±4% – 6% is considered a ‘good’ return on their investment.
While the capitalization rate is an easy way to compare your property against others on the market, it should not be the sole factor in your pricing strategy. Other considerations such as growth or decline of potential income, or an increase of property value should also be measured.
2. Understand investors’ points of interest
Investors are interested in a particular set of selling points. Attracting the right buyer for your property will help it sell in a timely manner. Ensure your information is up-to-date and accurate, as it will come up at the negotiating table! It’s much easier to negotiate a strong and favorable contract if your information cannot be disputed.
Current tenants. A rent roll provides a list of all of the current tenants in your property, their contract expiration dates and lease rates. The more established businesses with long-term leases will be more highly valued than unknown companies with short-term contracts. If you are having difficulty selling a property, be sure to analyze the tenant mix. If a few of your tenants are weaker than others, you may have to make some changes in order to sell the building.
Clean up and repairs. Even savvy investors are prone to purchases based on emotion. Good first impressions can be crucial to receiving offers. Consider sprucing up your landscaping, cleaning vacant spaces and making repairs. There is no reason to wait to until repairs are completed to place your property on the market; photos and descriptions can be updated after your improvement projects take place.
An investor wants to know what potential tenants will be attracted to the particular location. Offering information about who currently occupies the space and what types of tenants are most successful can be an important selling point.
Property highlights. A thorough market analysis will give you a list of competitors and their amenities.
Research the differences between competitive listings to understand their offerings compared to the sale price. Don’t be too discouraged if your property has fewer amenities than others in the area. Your cap rate is more important to an investor than the property’s bells and whistles. In fact, in some areas, keeping your amenities low will keep your costs down, which is a desirable trait for many commercial real estate buyers.
Demographics. Running a one-, three- and five-mile demographics report on your property will provide you with necessary insights into the surrounding population. Investors are interested in how tenants will perceive the surrounding demographics of a site. While many tenants prefer higher populations, others may prefer particular household income levels, age groups or property values.
3. Marketing your property
Potential investors need to know that your property is available before they can send offers. Don’t get stuck with one form of advertising. Instead, utilize every marketing channel to reach out to many buyers.
Investors’ points-of-interest: Remember the selling points that buyers care about the most: net operating income, cap rate, sales comparables, tenant mix, vacancy rates, property highlights, location highlights and demographics.
Financial statements: Including a pro forma income statement and rent roll will demonstrate the mix of tenants that the property attracts, and how much yearly income they can expect from the property. Make sure to tell your agent if you’re uncomfortable making this information public; he or she can provide it separately and only to serious buyers.
4. Appreciate details about different property types
An investor wants to know what businesses will be attracted to a particular property. The easier it is to find quality tenants, the easier it will be to get a return-on-investment.
5. Find a commercial real estate agent
“No Investor Should Have to Roll the Dice on Their Financial Freedom” ™
When it comes to helping property owners sell their commercial real estate in Oregon, I can provide guidance, property valuation, comparable sales reports, targeted marketing, demographic reports, traffic counts and contract negotiations. Pacwest Commercial Real Estate, Inc. can provide a full range of seller representation services to local, national and international clients. If you need help to find potential investors, assistance with your pricing strategy or finding the appropriate buyer for your building, I have the expertise to support all of your commercial real estate needs.
Seller Services Include:
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René’s Value to Clients:
- I educate, guide, and empower individuals, business owners, and corporations to identify financial opportunities.
- Using a custom, crafted analysis I provide facts and information uniquely created and expressly formed to demonstrate the maximum cash flow and performance of a property.
- The result for an investor is that they can identify dramatically improved asset opportunities, increase net income, and gain ownership satisfaction.