Challenge

I represented a local investor complete a 1031 tax-deferred exchange, selling his condo in Mission Valley and buying this townhome in Chula Vista. The condo in Mission Valley was owned free and clear however was only producing my client about a 2% return. I sold the property in March of 2022 and while we were able to achieve a premium sales price, we were now looking for a replacement property in a time some might classify as the hottest market ever. We had 45 days to identify our 3 potential replacement properties.

Action

We identified two submarkets that we would only search for a replacement property; Mission Valley and Chula Vista. I kept a pulse on these areas, analyzing every deal that came to market, and submit 11 offers before finally getting an offer accepted.

Result

While this property was purchased $26,000 over the asking price, it was still a great deal for my client. After executing a lease with a new tenant, my client’s return is now up to 6%.