Aaron McDermott, CCIM found a listing for an absolute no reserve auction of a 100% occupied retail property in downtown Hammond for sale. The property was fully leased but the terms of the auction where no financing, inspections (other than arranged tours), non-refundable earnest money up front, and no contingencies to close. The auction was less than 1 month away but the opportunity could be great.
We had been in working with an investor looking for property in the Northwest Indiana area some months ago. He had mentioned he could be a cash buyer for the right deal. We knew beforehand a lot of due diligence had to be done.
We interviewed the tenants during the auction process to determine any deferred maintenance issues. During that process we determined it was essential to give the tenants a sense of comfort with the possible new ownerships ability to be proactive to maintenance as the past owner had neglected
We analyzed and came up with a proforma including a budget for the capital costs and determined the maximum purchase price for the auction.
At auction our investor was the successful bidder. The purchase price was 24% below the our maximum value. The purchaser paid cash and later refinanced the property. The new appraisal was 39% higher than the purchase price. Directly after closing we were also able to extend the anchor tenant by 5 years.
Latitude provided us with excellent due diligence before the auction so that we were able to successfully and confidently purchase the asset.
-Jeff Keith Owner
We are excited to present to you our Annual Market Report for the year 2021,…View More
We are releasing our Annual Report for Northwest Indiana. We are very excited to share…View More