DURATIONAL PLANNING DELIVERS A SMART EXCHANGE
DONNA COURT
CLIENT GOAL
The sellers—a husband-and-wife team who inherited Donna Court with no prior real estate experience—sought to exchange into a larger, more passive multifamily asset out of state. Their goal: trade into an asset that could long-term income with less day-to-day involvement.
CHALLENGE
Donna Court comprised five non-contiguous buildings with deferred maintenance and below-market rents—making it tricky to finance and value as a whole. The property required a strategic marketing plan that could appeal to both residential buyers (interested in the townhome-style plexes) and commercial investors (interested in the portfolio).
Additionally, the sellers had a third-party management team unfamiliar with commercial sales, which required hands-on coordination throughout the process.
ACTION
The Christensen Group worked with the sellers for several years through our Operational Edge reporting to help optimize cash flow, dial in expenses, and track market value. When they were ready to sell, we developed a dual-track marketing strategy, listing the property both as:
Individual townhome-style plexes—priced to attract residential buyers using residential loans, and
A full 14-unit portfolio—structured to appeal to commercial investors targeting scale and efficiency.
This flexible approach broadened the buyer pool and allowed us to leverage individual pricing to drive maximum value at the portfolio level. Our campaign resulted in multiple offers from both buyer types.
RESULT
We closed at full price with an all-cash California-based 1031 exchange buyer at a 4.50% cap. The sellers then successfully exchanged into a $6,140,000 multifamily property master-leased to a local hospital in a red state, offering $383,796 in NOI on a NNN lease with 19 years remaining—a significant improvement from their $179,803 NOI on a management-intensive asset.
Thanks to proactive planning, detailed financial modeling, and creative marketing execution, the sellers were able to double their income and shift from hands-on operations to truly passive, long-term stability.
Donna Court - Beaverton, OR
Selling Price: $4,000,000
Units: 14
Year Built: 1996
Cap Rate: 4.50%
Square Footage: 17,048