Bargain Sales: A Good Deal for Sellers, Buyers, and Residents
Ready to get out of the real estate business, but want to ensure that your long-term residents won’t be displaced by a new owner? Looking for the best way to maximize your return on investment while leaving a legacy from your years of ownership?
Getting top price for your property is likely a priority when you are selling. And for owners of multifamily buildings that offer affordable rents, nonprofit buyers may be able to offer the best total package: a larger financial return to the seller’s bottom line and a stable home for residents.
This brief provides an overview and hypothetical examples that illustrate how a bargain sale to a nonprofit buyer can make the total value to the seller higher while the price to the buyer is lower. This pays off in the long-term for building residents, who will face less pressure from rent increases.
More resources on preservation can be found here. If you are considering the sale of your building and would like more information on preservation, please contact Jordan Backstrom.