Download the Multi-Housing Mid-year 2012 Report

 

 

Walter A. (Tony) Plath

Vice President

419.794.3960 t

419.794.6064 f

tplath@rkgcommercial.com

 

Harlan E. Reichle, CCIM, SIOR

President and CEO

419.794.1122 t

419.794.6060 f

hreichle@rkgcommercial.com

 

Quick Facts

  • Bank Owned
  • All 2 Bedroom Units
  • Across from New Construction Development

 

Client Testimonials

“Thank you for everything. It was a pleasure working with you.”

Julie Butticarlo, CCIM, Commercial REO Marketing Manager, CLMG Corp.

Bank Owned | Seller Representation

Bedford Woods Apartments | 1220 Bedford Woods Drive | Toledo, OH

 

Challenge

We also made them aware of some serious property management issues and assisted them in locating a new property manager. We created our marketing material and began shopping it to the market and had numerous offers that ultimately fell apart during inspections. We were able to identify some grading and crawl space issues, along with cosmetic issues in the halls and a number of units, that and the lender ultimately agreed to correct.  The Lender also allowed a price reduction to better reflect our market conditions. We then took it back to the market with these noted changes and found a buyer needing a 1031 exchange property and were able to negotiate a contract to satisfy all parties.

Solution

Our team dissected the numbers to better understand what could be modified or removed to eliminate non-recurring costs or extraordinary fees and expenses.  Our objective was to better illustrate the potential of the property to prospective investors. We put together a realistic pro-forma and a complete and thorough Offering Memorandum and began marketing to our database. A great deal of interest was generated, but many prospects struggled with the past operating expenses and some needed capital improvements. We worked to address these and show what could be changed to enhance performance while screening thru a number of the interested parties looking for one that could understand and be willing to address these issues not only to their own satisfaction but also to that of their prospective lender. One of the prospects was two brothers who own other apartment properties in the immediate area.  They did extensive research on how to reduce expenses and address improvements.  We assisted in structuring some attractive financing to make it work and the brothers purchased the property.

Result

After two years of working with a number of potential buyers and overcoming some significant issues to get this on a better plane, we were able to come up with the right fit and bring this to a close.