Bank REO Sale Closed
McQuaid Commercial Real Estate has closed the sale of a lender owned property on North Capitol Hill for $1,300,000.
Natalia Beran of McQuaid Commercial who represented the seller, Golf Savings Bank, said “while the seller initially thought that they only had land for sale, a product not highly desirable in today’s market, we were able to convince them that the property would sell for much more if positioned as an existing income property with below market leases and fortunately for us all the seller allowed us to proceed with marketing accordingly”.
The property was an assemblage of buildings leased to commercial tenants and the sale price equaled an 11.7 GRM and a CAP rate of 5.99%, a reflection of the below market rents and the superior location.
Previously under pre-development, the property had been managed with all short term leases in anticipation of vacating the property for redevelopment. Due to the change in market conditions the property was marketed as a long term investment with below market rents and a buyer was secured within a few weeks of going to the market. The local buyer intends to retain the existing tenants and offer them all long term lease agreements.
MCQUAID Commercial Real Estate is located at 400 Roy street in lower Queen Anne. It is an open concept, boutique-style firm offering advising services and focuses on superior client representation.