Building Generational Wealth
CASE STUDIES
HIGHLIGHTING GREAT DEALS
& SUCCESS STORIES
10% Vacant
Property Tax
In early 2008 MIP Real Estate began to warn clients that the city had proposed a 10% property tax on all commercial vacant properties. In the fall, many property owners were shocked to receive $30,000 tax bills on vacant properties that had been long boarded up and abandoned.
The owners of 1415 H st promised me for years that they were not ever selling a building and they were primarily interested in maintaining a relationship with MIP as a potential buyer.
Facing a bloated tax bill and no desire to pump $100,000 into a building with no tenant, the owners decided to have Metro Investment Properties to market and sell the property. Upon completion of the sale, the property owners have worked with MIP Real Estate on two additional transactions and maintains a close relationship with our firm.
Highest & Best
Use
When our client intially decided to sell his auto garage he felt as though he had a very firm grasp on the property value because he had followed almost every transaction in the area for the past few years. The owner had recorded the prices per square foot of almost all of the area's similar transactions and was sure, based on the number of other deals, on the value of his asset. At the inital meeting, he was already convinced that he wanted to list with our team but wanted to hear our opinion as a formality.
While our client correctly applied one method of property valuation in assessing his asset, he did not consider all potential buyer types in his evaluation. Since his property sat within a few blocks of a metro station and was encumbered by a relatively short lease, MIP looked at the asset for both its value as a redevelopment parcel and as a leased investment. Ultimately, MIP was able to achieve a price $150,000 above the client's projected value and was also hired to sell a second asset for the client.
Tenant's Right
of First Refusal
The owner of 3210 Georgia Ave had sold his liquor business a few years ago and relocated to Arizona to retire. His plan was to allow the tenant to settle into the business while establishing themselves and to eventually sell them the building as well. During my initial conversation with the owner he mentioned that he was currently wrapping up negotiations with his tenant and that the tenant planned to close on the property sale within 45 days.
Over the course of the next 2 years I continued to update the owner on property sales and recent developments. Meanwhile, the tenants continued to delay moving forward on the purchase of the property. Finally in October 2006
the owner decided to move forward with our team on the sale of the property. He then explained to me that the tenant had the first right of refusal which allowed them to match any offer price as long as the tenant could close within thirty days.
Our initial marketing efforts led to two full priced offers for the property that were $50,000 above the price that the landlord had agreed to with his tenant and one additional offer that was also above the tenant's initial offering price. On December 1st, we presented the tenant the offers and started the 30 day clock which required the tenant to close the transaction. Firmly motivated, the tenant stepped up and closed on the purchase of the property on December 23-just under three months after our marketing efforts began. The landlord was able to cover the costs of the commission, plus an additional $17,000 through our relationships with established buyers and strong community banks.
Targeted Marketing Campaign
The owners of Design Army, one of Washington DC's top graphic design firms, hired MIP to lease the ground floor retail space of its newly built office building in the burgeoning H St NE corridor. Since the corridor had become an entertainment hub, countless restaurants and bars had opened there and it seemed like new venues were opening every month. While the owners of the space were happy to see the corridor thriving, they knew that having a food or bar operation beneath their office would not be a great long term solution for them or their employees.
Despite some intial reluctance, the owners decided to hire Metro Investment Properties to market their space. The owner gave strict instructions to avoid bar and restaurant concepts at all costs and really focus on "creative "tenants. Metro Investment Properties took on the assignment and actively solicited the target tenant type from its relationships and conversations with other retailers in other corridors throughout the city. We were able to generate 4 bonafide offers from "creative" tenants, leaving the owner and their new tenant extremely satisfied with their new arrangement
