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A MULTIFAMILY LIQUIDATION SUCCESS STORY

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Background

In the challenging real estate market of the East Bay, the HAYLEN Group was confronted with a formidable task: facilitating the sale of a multifamily property on the verge of a loan adjustment. Amidst an environment of rising interest rates, attracting an investor for this income-generating asset was akin to navigating through a storm. The daunting prospects of high debt service costs versus income potential made for difficult IRR scenarios for potential investors. However, with strategic foresight and expert navigation, the HAYLEN Group charted a successful course.

Our Strategy & Approach

Understanding the property's intrinsic value and potential for growth, we focused on getting all vacant units, including a non-conforming unit, move-in ready. This also encompassed completing all exterior capital improvements and city-required repairs, laying the groundwork for enhanced property appeal.

With the property's enhancement in full swing, we strategically rented out one of the vacant units at market rate. This not only showcased the property's income-generating potential but also significantly improved the Net Operating Income (NOI), making the investment more attractive to prospective buyers.

Through extensive and targeted marketing efforts, we generated substantial interest in the property. This phase was crucial for attracting the right buyer who could see beyond the present challenges to the property's potential.

When the buyer's initial financing fell through, we stepped in with a solution. Recommending one of our preferred lenders to take over the buyer’s loan proved to be a game-changer, enabling the financing to be secured with less than 40% down, despite the existing vacancies and legal complexities.

Before & After

What We Did for the Property

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Setting a New Benchmark in Real Estate Innovation

Despite navigating through a climate of high interest rates and encountering legal challenges during the escrow period, the HAYLEN Group managed to steer the sale to a successful conclusion. This strategic maneuver not only facilitated our client's desired exit under pressing circumstances but also primed the buyer for immediate income enhancement through rent increases. Moreover, the potential for additional revenue from individual garages, with the prospect of exploring ADUs, marked a significant win. This case illustrates the HAYLEN Group’s unwavering dedication to delivering bespoke real estate solutions, leveraging an extensive professional network, and overcoming obstacles to secure exceptional outcomes for our clients.

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Contact Details

Haylen Group

(408) 800-5478

[email protected]

 

1900 Camden Ave. 
San Jose, CA 95124