Ponderosa Pointe Apartments Home / Ponderosa Pointe Apartments

$ 3,100,000

Ponderosa Pointe Apartments 

  • SALE PRICE $3,100,000
  • BUYER EPH Properties
  • SIZE 48 Units
  • PROPERTY TYPE Multifamily
  • YEAR BUILT 1987

CHALLENGES

  • Poor trailing financial reporting
  • Owner was an estate
  • Smaller deal thinned the buyer pool

RESULTS

  • Closed on time
  • Sub six cap rate
  • Smooth transaction

MAJOR POINTS:

  • 5.37% cap on T-12
  • 23 offers
  • 166 confidentiality agreements

PROJECT OVERVIEW

Scott was hired by the owner (a family estate) to market and sell Ponderosa Pointe Apartments. Ponderosa Pointe is a 48-unit property built in 1987 and located in the quite town of Ralston (Omaha MSA). Ponderosa was a unique deal, the trailing financials were not strong, rents were below market with plenty of room to grow, and the unit interiors were vintage 1987, very clean but dated finishes. This property attracted a ton of attention, we had 166 confidentiality agreements, mostly from out of state buyers, that resulted in 23 offers and drove the cap rate down. This deal epitomizes the importance of having the depth of offers and keeping the backup buyers engaged, we did need to move on to the backup buyer after the group we initially awarded the deal to had issues with obtaining nonrecourse financing due to issues unrelated to the property. The results were that we closed for top dollar, and with a great cap rate. The Buyers plan to strategically upgrade units over time, add some amenities, and push rents.

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