Sunday, January 6th, 2019 January6th2019

Sell for More Trivia: What is a break-up sale?

Published on January 6th, 2019

Sell for More Trivia is a weekly blog series that playfully presents a trivia question about commercial real estate.

 

A break-up sale happens when a large property is divided into smaller offerings which are sold individually.  The idea is that the sale prices of the smaller offerings will add up to more than if the property were sold as a whole.

Some examples:

  • A mixed-use building whereby each use is contained in its own condominium
  • A retail strip center that converts each suite into a condominium
  • A large retail center with standalone buildings on its outlots that are sold individually
  • A large office building that converts each floor or each suite to a separate condominium

Why?  The pricing of separate, smaller offerings typically appeals to a much larger buyer pool.

I would also argue that in many cases the buyer cares how much the seller paid for the property.  If the seller purchased a property and then divided it into smaller offerings, the price they paid for the entire property becomes less relevant.

 


How much is your property worth?  Find out now…plus get the step-by-step blueprint to sell your property for the absolute highest price the market will pay, free (click here)


Get an unfair advantage.  Get exclusive weekly benefits by joining Sell for More Club (join now)


Pop the champagne.  Our clients celebrate when their sale closes…and we supply the champagne.  Click here to schedule a no pressure call to get started.


About Beau Beach, CCIM

Beau is a tenacious Commercial Real Estate Broker, author and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.

Beau leads Prowess IRES which is a commercial real estate broker for sellers in the Nashville, Milwaukee, South Florida and Chicago markets.

He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.

Beau can be reached at 414.324.4938, 615.603.9770, click to schedule a call or Beau@ProwessIRES.com