CS_NOIPG_450_Pacific_P1
0 likes218 views
Marcus & Millichap sold a 24,500 square foot office building in San Francisco for $7.833 million, $2 million more than an unsolicited offer the owner had received for $5.5 million, and $1.2 million more than what another broker had priced the property. Through targeted marketing focused on potential tenants, Marcus & Millichap generated seven offers and ultimately sold the property to a law firm for $7.833 million, netting the owner over $2 million more than the initial unsolicited offer.
CS_NOIPG_450_Pacific_P1
- 1. Marcus & Millichaps Market Expertise Nets Seller $2 Million More Than Unsolicited Offer and $1.2 Million More Than Competitors Pricing Alan L. Pontius, National Director National Office and Industrial Properties Group (415) 391-9220 apontius@marcusmillichap.com Offices Nationwide www.MarcusMillichap.com 1007 Marcus & Millichap recently demonstrated its unmatched ability to create value for properties with the closing of the office building at 450 Pacific Avenue in the Jackson Square neighborhood of San Francisco. The property, which was sold vacant, measures 24,500 square feet and closed at $7.833 million, the equivalent of $296 per square foot. The owner of the property had received an unsolicited offer of $5.5 million on the property and countered at $5.8, but was unable to make a deal. He had been in touch with local Marcus & Millichap agents and invited them to make a proposal. Another national brokerage company had priced the property as high as $6.5 million but the Marcus & Millichap agents felt that the property was even more valuable and believed they could achieve a price close to $8 million. The sellers, having nearly sold the building a few weeks earlier for nearly 30 percent less, were hesitant to commit to what seemed to them to be an unrealistic price. The Marcus & Millichap agents, however, demonstrated how the companys culture and marketing system would generate maximum interest in the property from all investors, creating a competitive bidding environment that would increase the price. After two weeks of deliberations, the sellers agreed and the agents immediately began a detailed and targeted marketing campaign. They specifically targeted smaller tenants that had leases rolling in the upcoming six-to-eighteen months in San Franciscos financial district. These firms were sure to see a huge rent increase as the financial district was seeing one-to-two percent rent growth per month at the time. The agents generated seven offers, including one from a young local developer at $7.8 million. The agents were unsure if this developer would ultimately close, but the seller decided to go under contract with him. Meanwhile, the agents retained an active dialogue with other potential buyers, including a law firm, whose lease in the Embarcadero Center was coming due soon and they were looking for a cheaper alternative. Eventually, as the developer failed to perform on certain requirements of the contract, the law firm paid the developer $500,000 to assume the contract at $7.833 million and closed the deal, netting the seller more than $2 million than they had been ready to sell the property for to the initial, unsolicited offer. Property Name: Price: SF: Location: 450 Pacific Avenue $7,833,000 24,500 San Francisco, CA Seller receives an unsolicited offer for property at $5.5 million. Counters at $5.8 million, but cannot make a deal. National brokerage company proposes to sell the property at $6.5 million. 1. 2. 3. Seller asks Marcus & Millichap agents for a proposal. To the disbelief of the owner, the Marcus & Millichap agents insist the value of the property is almost $8 million. Marcus & Millichap gets the listing. Agents targeted marketing produces seven offers. Law firm pays developer $500,000 to assume their contract on the property at $7,833,000. 1. 2. 3. 4. 5. Before: After: