Developers work hard for their living. Permits, financing, delays and over-runs are typical for them. So, leaving money on the table is not what most developers want to do.
Unfortunately, the developer of this superb asset had wanted to reward the firm he had used to do the leasing. So, he used their “investment sales group” to market the property. They had procured several offers and then the property closed. So what is wrong with that? It was not even close to top dollar.
We noticed that this property had been sold at a discount to the market. After our observation, we immediately called up the buyer, congratulated them on their purchase, and asked them if they would be interested in marketing this property for 15% more than they had just paid. They agreed.
We marketed the property to national and international markets. We knew that this property would have a lot of appeal since it was considered a “trophy property.”
After our approach, we acquired numerous offers. We ended up locating a buyer out of South America who was placing capital in different locations. We knew that this property would appeal to this group because of it location, appearance and their need to place capital. This actually was only one of several offers at this new higher price.
In the end, we were able to provide the owner with an almost 15% price premium over what she had just paid, within 3 months. Rewarding the leasing brokers firm with a sales assignment had cost the developer several hundred thousand dollars.