Situation
A client of Robb Osborne’s, and a locally operated LLC, surveyed the Sacramento marketplace for a value-add investment property with upside potential. In 2011, the commercial real estate market was crowded with bank owned or possible short sale options. Investors needed to maximize benefit and capitalize on economic instability.
Challenges
Osborne and his client found a fully improved, bank-owned office/medical building. The project was currently vacant, yet located within a large retail/office development in a relatively new suburb of Sacramento, Rocklin, CA. The investor took a risk and purchased the building during an economic recession and shifting market.
Results
Osborne and the client applied to the City of Rocklin to attach a condo plan to the building, which was approved. The building now offered the investor three, separate, medical or general office units to sell or lease. Osborne successfully sold two of the units to owner users and leased the third unit, which was then sold to a second investor as a “leased investment.” Ultimately, Osborne was able to navigate through the economic downturn with creative thinking by capitalizing on a bank-owned purchase and working with bureaucracies to achieve the condo plan. Osborne was able to exceed his client’s expectations in a fluctuating market by creating a monetary gain through inventive dispositions.