PLATFORM-POWERED RESULTS IN A COMPLEX ENVIRONMENT

KEYSTONE APARTMENTS

CLIENT GOAL
The seller of Keystone Apartments needed to close before year-end to meet a 1031 exchange deadline. The asset had strong location fundamentals, but its age and condition made a smooth closing far from guaranteed. The seller’s priority was finding a buyer who could move quickly, navigate financing challenges, and perform without delay.

CHALLENGE
Built in 1924, Keystone Apartments carried the expected complications of a century-old property—galvanized steel plumbing, aging infrastructure, and a rotting exterior deck. The buyer, while experienced in real estate, was new to multifamily investing and lost their original lender mid-escrow. With the clock ticking on the seller’s exchange window, the risk of deal fallout was high.

ACTION
The Christensen Group recognized the property’s upside—rents were 18% below market, and the path to stabilization offered an 18.7% projected CoC return. We restructured the deal around the value of that upside, and our in-house capital markets team at Marcus & Millichap Capital Corporation (MMCC) stepped in to source new financing when the initial lender withdrew. Meanwhile, we secured a $50,000 credit to address key deferred maintenance items, preserving the economics for the buyer and keeping the deal on track.

RESULT
The property closed on December 29, 2023, meeting the seller’s critical exchange deadline. The buyer secured financing through MMCC and closed at an 8.82% cap rate, up from the original 7.11%. This transaction demonstrates the power of our full-service platform—from brokerage to capital markets—and our ability to execute when timing, complexity, and value are all on the line.

KEYSTONE APARTMENTS – PORTLAND, OR

Selling Price: $2,195,000
Year Built: 1924
Total Units: 27 Units
Cap Rate at Offer: 7.11%
Cap Rate at Close: 8.82%
Closing Date: December 29, 2023
Stabilized CoC Potential: 18.7%