Client Challenge: Preparing San Sebastian Place for a Strategic Sale

San Sebastian Place, a well-maintained 28-unit apartment complex situated in the peaceful environs of South Augusta along Tobacco Road, presented a unique opportunity for its long-term owner. Having managed the property personally for many years, the owner decided it was the opportune moment for a strategic downsizing of his portfolio. Recent updates both inside and out had increased the property's appeal, but like many in his position, the financials were structured for tax efficiency, showing minimal profit and not the actual income potential.

Action Steps: A Methodical Approach to Enhance Value and Marketability

Our approach was multifaceted, beginning with the financials. Recognizing the need to reflect the true value of San Sebastian Place, we collaborated with Chris Lewis from Cherry Bekaert to revamp the accounting presentations. This ensured the Net Operating Income (NOI) was accurately captured, providing a realistic picture of the property’s profitability.

Simultaneously, we assembled a top-of-market marketing package aimed at attracting even out-of-state buyers without the need for a physical visit. This package included high-quality still photography, aerial drone videos, a 3D virtual tour, and detailed floorplans. We employed a robust marketing strategy, leveraging our proprietary segmented database along with platforms like Costar/Loopnet and Crexi.com, supplemented by direct calls to potential buyers.

The offer management process was meticulous. We received 11 varied offers, which we carefully analyzed and ranked via a detailed spreadsheet, allowing us to identify the most beneficial proposal clearly.

Value-Added Results: A Successful Sale at Optimal Terms

The strategic enhancements to the financial statements, combined with our comprehensive marketing efforts, culminated in significant interest in San Sebastian Place. Out of the several proposals received, the property was sold for an impressive $1,837,500, which translates to $65,625 per door. The sale achieved a 4.6% Cap Rate based on the 2020 NOI and a promising 5.6% Cap Rate based on the 2021 YTD NOI.

Client Testimonial: Beyond Expectations

"Jonathan and Dustin with the Finem Group did an amazing job of selling our apartment Complex. They walked us through the process of getting the property ready for sale, including reviewing the accounting records. They not only sold it at full asking price but they brought over a dozen qualified offers,” stated Bill McGahee, the former owner of San Sebastian Place.

This successful transaction underscores the importance of a well-coordinated strategy that includes precise financial representation and robust marketing efforts. At Finem Group, we pride ourselves on our ability to prepare and position properties to attract the best possible offers, ensuring our clients achieve their financial and strategic goals.