Increasing the NOI for Top Dollar Sale of Multi-Unit Property
The Challenge
After a thirty-five year investment period, our client decided it was time sell his 3-unit apartment at 1224 Prince Street in Old Town, Alexandria. The property was highly desirable but faced challenges with slightly below-market rents and one vacancy. The goal was to maximize the property’s value and complete the sale by the year’s end, a tight timeframe that required precise execution. This involved swiftly analyzing the apartment rental market, re-leasing the vacant unit within thirty days, and preparing the building for market with necessary updates, including painting and minor renovations. A crucial element in enhancing the asset’s value was increasing its net operating income (NOI), making it more appealing to potential investors while ensuring the property stood out in a competitive market.
Tartan Action Plan
Recognizing the pivotal role of the NOI in boosting property value, we conducted an in-depth rental market analysis, utilizing current rental comps to devise leasing strategies that elevated the asset’s revenue potential. We worked closely with contractors to expedite the necessary updates, ensuring the property was market-ready in record time. We then developed a comprehensive investment package to showcase the property’s financial strength and future prospects, highlighting its potential for growth and return on investment.
Our team launched an extensive marketing campaign, leveraging digital platforms and targeted outreach to owners of similar product type in the submarket to attract serious buyers and foster a competitive bidding environment. By targeting the right investor pool and maintaining robust communication, we ensured market demand worked to our client’s advantage, ultimately positioning the property as a prime investment opportunity.
The Results
Tartan Properties’ strategic approach led having the property under contract in eleven days, closed in forty-eight days and sold at 98.6% of asking price. Equally as important, we were able to achieve these results within the tight time frame set by our client of closing before the end of the year.
