Even with great tenants, many wealthy buyers and institutions will not acquire properties in tough areas, fringe areas, or even small markets. Especially when the price per foot reaches to $500 PSF, which can be well above replacement cost for this somewhat gritty but, “up-swinging” area.
In this case, southerners and local Atlantans alike spurned this offering even though the tenant was reportedly worth millions.
We continued to market nationally and internationally. Ultimately, we located a buyer out of Brooklyn, NY. The buyer we found was no stranger to the tough area dilemma, considering he had sold a “tougher” apartment complex. That buyer had seen his area go from bad to decent. He saw a great future for the Lithonia asset, which has in fact occurred.
This ability to market properties not only nationally, but to owners of other property types, is critical in today’s market. Shane excels at this.