Osborne Closes 2nd Sales Transaction For 2018

Ron Osborne, Broker of RJ Realty, is pleased to announce the second closing for 2018.  His client, 4770 MG Holdings LLC, purchased a single tenant building in Ft. Myers, FL.

The tenant, Mattress Firm, has over 11 years left on the current lease and the property closed in 60 days from contract at a 6.75% cap rate.  Osborne said that one of the unusual aspects of the sale was his client that was not in an exchange was able to place the property under contract at price lower than a 1031 buyer was willing to pay, according to the listing agent.

One of the main reasons Osborne was able to accomplish this was that the seller recognized that most 1031 buyers will place at least 3 properties under contact, drop all but three and then choice one of those 3 before the end of the 45-day ID period.  Seller’s are starting to recognize that the best buyer may not be the 1031 buyer that is overpaying, but an all cash buyer that demonstrates his ability to close.  The security of a good strong buyer, at a fair realistic value, is more important to some sellers than getting the higher price, from a buyer that does not close and has to go through multiple buyers prior to closing.

Osborne says he has several of his clients that have chosen to pay their taxes on the sales rather than have to deal with overpay for a property to complete the 1031 exchange.  They will purchase another property in most cases but taking their time to find the best opportunity and getting a reasonable cap rate, this also allows them to creating a new basis in the property thus maximizing their deprecation.

The seller was represented by Jim Agard of Barnes International Realty