Challenge

Max Reynolds and his team represented the Seller in this off-market transaction. The Seller had originally acquired the ±25,366 SF retail center in 2003 for $2,775,000. At the time of the sale in 2019, the property had a lot of deferred maintenance and an “elbow” unit, which made up approximately 22% of the center, that had been vacant for several years.

Action

With a strong market presence in the College Area, Max and his team were able to source a Buyer that owns several other strip centers in the area. This property was going to be the Seller’s down-leg in a 1031 exchange and Max was able to negotiate for the Seller to have an option to extend escrow, giving them more time to identify their up-leg property.

Result

Max and his team were able to sell the center for $5,135,000, bringing a net profit of almost $2,700,000 to the Seller. The Seller was then able to successfully exchange their equity into another project closer to their headquarters in Los Angeles, CA.