FROM FIRST-TIME SELLERS TO RETIREMENT INCOME

7TH STREET APARTMENTS

CLIENT GOAL

After moving out of state, a husband-and-wife ownership team wanted to sell the only apartment complex they had ever owned. Their goal: cash out and maximize proceeds while exploring options for offsetting capital gains taxes.

CHALLENGE

• The property was locally managed for years, with rents nearly 30% below market.

• Rising interest rates and a submarket cap rate below the norm made pricing aggressive.

• As first-time sellers, they needed education on 1031 exchange alternatives.

• They also sought creative financing solutions to address a looming capital gains tax liability.

ACTION

• We provided clear market rent analysis and worked with the sellers to increase income during the listing period—boosting buyer confidence.

• Our team sourced a targeted buyer through internal broker relationships—someone who understood the long-term potential of below-market rents.

• Negotiated a Seller Carryback Loan structure that not only facilitated the sale but also helped defer part of the capital gains impact.

RESULT

Despite macroeconomic headwinds, the property sold at full list price, and the seller-financing arrangement allowed the owners to begin a new phase of life with passive retirement income secured by a real estate note. A successful outcome for a first-time sale—turned long-term win.

7th Street Apartments - Eugene, OR

RELINQUISHED
7th Street Apartments – Lebanon, OR

• Total Units: 16

• Selling Price: $1,695,000

• Cap Rate: 4.90%

• Price/Unit: $105,938

• Year Built: 1994