We recently had the good fortune to win the listing on an architecturally significant asset in Long Beach. After years of family ownership, the seller was ready to evaluate their options and determine if their current goals could be accomplished in a better way. Initially the property was purchased to shelter money, perhaps enjoy some appreciation and house the family business. Years later, they’d accomplished their goals, the building was worth more, the business had been a success, but other more desirable goals were calling. Now, our client was looking to enjoy the success, slow down, downsize the business and create a passive cash flow that would replicate current income. Over the course of a series of meetings, we asked lots of questions and understood what our client wanted to retain and what they wanted to accomplish in the future. We went beyond just pricing the property, creating a strategic plan to that included not only how they would achieve their goals but the timeline and step-by-step process to accomplish it easily and effectively.
Once we understood the client and their plan, we turned our attention to positioning the property to maximize value. Each property is unique and has various attributes that are desirable. With the current property we had to create a marketing plan designed to attract the right business owners. The asset wasn’t perfect for every investor, but it was just right for certain investors. Our team took the property to market — both old school and new school. We used our team concept to knock-doors, network, call and advertise online. Making sure to always tell the story of how the next investor could pay the asking price and years from now have a profitable investment.
After targeting the right investor group, we received numerous offers. Some investors really liked the property, but we knew they didn’t have the right strategy, while others were the perfect buyer. The competition created from all the interest created a bidding war and the price increased significantly. Settling at a record setting price for office in the sub-market. The negotiations also yielded plenty of time to find a new smaller base of operations for the business and acquire a second property for investment.
With 60 days to spare in their down-leg escrow, and the 1031 clock not even ticking our client had secured their up-leg properties. Utilizing our team and relationships throughout the brokerage community they completed a stress-free Centennial Advisers Simultaneous Exchange.
We’ve completed over 4,000 transactions and 1,000 of those have been a part of a 1031 exchange. Every transaction has contributed to our expertise. 1031 Exchanges have become our “rocket-science,” too complicated for many, but for those that get it, the fuel to exceptional investment performance.