OUT-OF-STATE BUYER INVESTOR

CLIENT CASE STUDY

2012: Complete 1031 Exchange (place proceeds from the sale of a California owned property and acquire an apartment complex in the Gresham, Oregon sub-market of Portland, Oregon).

2018: Complete another 1031 Exchange from the sale of another California owned property.

Wellington Square Apartments, Acquired (through 1031 Exchange),

2012 - $1,825,000. Realty Yield arranged acquisition financing.

In 2012, the investor contacted Realty Yield directly, inquiring about one of our listings, and asked about any other potential opportunities as well. The investor screened and evaluated several properties in the $1.5M-$2M price range.

In 2018, our CA-based client contacted Realty Yield again and communicated that he was in the process of selling another CA property and wanted to complete another 1031 Exchange (target price range, $5M-$6M). In working with Realty Yield, several potential acquisitions were screened and analyzed.

2012: Investor chose to pursue Realty Yield's listing located in the Portland sub-market of Gresham, Oregon.

2018: Client chose to pursue an 80-unit apartment property that was also located in his preferred sub-market of Gresham, Oregon.

2012: This was a very straightforward transaction. The size (price) of our Listing was a perfect fit for the capital available from the sale of his CA disposition.

2018: The targeted acquisition fit our client's preference for a property that offered some value-add upside, however the capital needed to complete this acquisition exceeded what was going to be available from the sale of his CA disposition (NOTE: the price was slightly above the targeted price range plus the current loan had to be assumed because of the very high prepayment penalty that still existed). Hence, additional capital of approximately $875,000 was going to be needed.

2012: A Purchase & Sale Agreement was drafted by Realty Yield (NOTE: Investor/Buyer chose to work directly with Realty Yield versus seeking outside Broker representation). Realty Yield arranged the acquisition financing.

2018: Though not considered at the beginning of this engagement, it was decided after considerable financial analysis that our client would sell (1031 Exchange) the 27-unit property he had acquired in 2012 to raise the additional capital needed to acquire the targeted 80-unit apartment complex that was his top choice.

2012: The 1031 Exchange was easily completed in the timeframe required.

2018: A quick and timely sale of his 27-unit Gresham, Oregon property was completed to raise the capital needed to combine with the funds from his CA property sale. The dual 1031 Exchange (sale of 2 properties) was coordinated successfully and we closed on the 80-unit value-add apartment complex shortly thereafter.