The seller had bought this property last June, with a plan to renovate and keep the property as a long-term investment. However in December the owner unexpectedly relocated to Beijing. The renovation plan was only partially completed however some of the rents had
increased and overall the property looked much better from the exterior. After determining the likely sales price we brought the property to market and secured a good buyer within about 6 weeks. The buyer decided to pay more money down and assume the existing loan rather than enter into the uncertain new debt market. After the dust settled, the sales price was nearly 12% higher than the price paid 10 months earlier.The seller, VIP LLC, an entity controlled by Yimin Chen, says that without the determination of the broker this deal would have never happened and it needed to.
The price per unit of $174,375 was considered reasonable due to the higher yield/CAP of 6.68 attributable to the high rents paid by high demand student population seeking close proximity to the UW.