This San Francisco asset had it all–the good, the bad, the ugly, and of course, a happy ending.
Before Shane took this San Francisco asset to market, it had been on the market for 6 months without any success. There had been some offers, but the problem was not just the low price. No one could be persuaded that the risk of owning a property with a four foot slab of concrete as a roof, holding up 64 un-owned townhouses, was a good idea. Even San Francisco buyers didn’t like this -especially in an active earthquake zone.
What we did to get this closed was to address head on the issues that were causing fear in the buyers.
The long term visibility of the concrete slab.
The problem that the building could be converted into other uses in the future.
Go out to other urban markets where this construction style was more prevalent.
We located a buyer from Detroit, who also owned in Chicago and New York, and was knowledgeable of this construction type. Second, we obtained more than one “noted” structural engineers evaluations of the property. We had the concrete “x-rayed” to make sure it was as good as it looked. We engaged the architect who had built the property years earlier to explain the flexibility of the space for future users.
In all, we were able to beat any local buyer prices by nearly 8% and got the property sale closed. The new buyers have done very well with the property ever since, and the seller was indeed pleased.