Forty-eight owners
Long-term ownership had passed down through multiple generations. Many of the owners had never met each other, and every one of them had to agree to sell.
Case Study · Complex Ownership
One sale. Forty-eight owners.
3875 Telegraph Ave, Oakland. A 13,052 SF building owned by 48 owners, many of whom had never met each other, with ownership passed down through multiple generations. The tenant was an affiliate of Sutter Health operating a surgery center. We represented the sellers.
48Owners to align
$4.5MClosed sale price
102%Of the $4.4M asking price
13,052 SFRentable area
The challenge
A shared decision among strangers, and a tenant that could not be disturbed.
A corporate tenant
The tenant was an affiliate of Sutter Health, a large healthcare organization with its own process and requirements.
A surgery center
The use was a surgery center with expensive equipment, doctors and nurses, and patients day and night, all subject to HIPAA patient-privacy rules.
What we did
What the sale required.
Unite the ownership group
A sale needs the whole ownership group behind it. The process had to take 48 owners, many of whom had never met each other, from listing through offers to closing.
Respect the tenant's operation
The building operated day and night under patient-privacy rules, so tours and buyer due diligence had to work around patient care, staff and equipment.
Market the income
The building was marketed as an investment with a corporate healthcare tenant in place, with a 4.87% cap rate at sale.
The buyer
An investor completing a 1031 exchange.
The result
Sold in 2017 for $4,500,000, $344.77 per rentable SF and above the $4,400,000 asking price.
Why it matters
Inherited and multi-owner properties are often assumed to be too hard to sell. This one sold above asking.
Tenant and ownership details are described here in general terms. See the 3875 Telegraph Ave transaction or all closed transactions.