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Tioga Hotel & Koski Building

"We located and represented a qualified out of state buyer through our marketing approach, assisted in clearing up all title issues, and ultimately facilitated the sale with a closing prior to the December deadline."

Project Outline

Kidder Mathews was contacted by the personal representative of a large estate to evaluate and sell two historic buildings and a vacant lot in downtown Coos Bay, Oregon. Believed to be the tallest building on the Oregon Coast, the Tioga Hotel is a 9-story building built in 1926, that was operating as 51 apartment units with four retail spaces. The Koski Building located next door was built in 1920 and is comprised of 19 apartment units and two retail spaces. Both buildings are on the National Registry of Historic Places.

The Challenge

The estate obtained possession of these properties in January of 2006, after the death of the owner who had owned them since 2004. The estate enlisted our services in May of 2007, with a court imposed date to close the sale of the properties by December 2007.

Coos Bay, the largest city on the Oregon Coast, is a historic blue-collar town that has been economically depressed over the last 20 years. The downtown core suffers from high retail vacancy and the tenant demographics for housing is primarily lower income.

The estate obtained the properties with little prior financial and business records. Both buildings suffered from deferred maintenance with several projects left unfinished and four of the retail spaces vacant at the time of the listing. Both had been leveraged by the previous owner so the outstanding debt nearly equaled the market value. Several complicated tax and title issues existed and the status as Historically Registered buildings further complicated the transaction.

Our Approach

With a deadline to market and close the sale of these properties within seven months, we met with the personal representative and on-site manager to gather all available records and obtain a solid understanding of what the properties entailed, including their current operations, history, and who the target buyer might be and for what possible uses.

Utilizing all resources, we created a detailed analysis of the current operations from the partial records available and determined a market value for the buildings. The detailed marketing package described the current, past, and potential future operations for the buildings, along with a detailed physical description and overview of the improving local market conditions.

Upon finalizing the marketing materials, we undertook an aggressive marketing campaign utilizing our company's national platform to target investors around the country who may be interested in the buildings, and those potentially interested from a development standpoint. We worked with several parties, including the estate, city, and LandAmerica Title to clear up the multiple challenging issues precluding a sale.

We fielded numerous inquiries from interested investors around the country and carefully qualified each with the goal of locating the most qualified buyer.

Results

We located and represented a qualified out of state buyer through our marketing approach, assisted in clearing up all title issues, and ultimately facilitated the sale with a closing prior to the December deadline at 90% of the original listing price.

The estate successfully sold the properties with positive equity and the buyer obtained two buildings on the National Historic Registry with significant upside.

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Services Provided

  • Owner Representation
  • Buyer Representation
  • Property Evaluation
  • Transaction Management