SELLER DOUBLES EQUITY IN FOUR YEARS

CEDAR VILLAGE TOWNHOMES

CLIENT GOAL

After acquiring Cedar Village with our team for $2,900,000 in 2020, the seller partnered with our team to reposition the asset for long-term value. Their ultimate goal was to execute a strong exit with assumable financing while maintaining upside for the next buyer.

CHALLENGE

The property required extensive work at the time of acquisition and had significant deferred maintenance. Five separate buildings, each on one site, created structural complexity. In addition, maximizing pricing would depend on presenting both a stabilized cash-flow story and the long-term development potential for an additional 25 units (buyer to verify with City of Vancouver).

ACTION

Over the course of four years, we collaborated with ownership through our Operational Edge reporting, helping to:

• Strategically pace rent increases with value-add renovations

• Forecast operating expenses and flag capital priorities

• Position the asset for assumable Freddie Mac financing with 7 years remaining at 3.42% interest and one year of interest-only

Leading into the sale, the seller completed major upgrades including:

• Full siding, window, and slider replacement

• Exterior repainting (2023)

• Renovations on most interiors with rent premiums reaching $1,500+

Our marketing strategy emphasized the rare combination of low density, turnkey improvements, in-place cash flow, and future development upside. We tailored the offering to attract buyers interested in long-term value and assumable financing.

CEDAR VILLAGE TOWNHOMES - VANCOUVER, WA

Selling Price: $4,200,000

Year Built: 1973

Units: 22

Cap Rate: 6.84%

Square Footage: 17,454