HomeMy WebLinkAbout03/01/2004, CLOSED SESSION - POSSIBLE PURCHASE OF 633 PALM ST. Barbara Ehrbar- Possible purchase of 63' llm St. Pagglil
RECEIVED
From: "triguy2" <triguy2@msn.com> MAR U 1 2004
To: <slocitycouncil@slocity.org>
Date: 2/27/04 4:31 PM $LO CITY CLERK
Subject: Possible purchase of 633 Palm St.
Dear City Council members,
I represent the owners of the property at 633 Palm St., SLO.
Last November, my clients & I had a meeting with the Public Works Dept, & indicated our interest in
selling the subject property to the City of SLO for$600,000. The Public Works Dept. got preliminary
approval from the powers at be to have an independent appraisal ordered on the subject property.
There seemed to be a significant period of time that passed from the ordering of the appraisal to the time
of completion, no fault of City staff, (appraisers had been backlogged & it is not uncommon for a
"non-purchase" appraisal to take 4-6 weeks). That said, it is my understanding that the appraisal has now
been completed and we can hopefully move this discussion into the negotiation phase.
Due to market conditions changing &the lag time in getting the appraisal completed,the real estate
market has taken another jump forward& prices has seen additional appreciation since our first meeting
with the city back in November.
At the present time there are only a few multi-family properties currently for sale in SLO&non have as
much market appeal as the property at 633 Palm St.
My clients have evaluated the current market conditions &the lack of multi-family property that is for sale
in SLO and they have instructed me to raise the asking price to$650,000. This price change is not
motivated by greed but does reflect the changes in the market& is still substantiated in value as the gross
rent multiplier for the property is still only 17.4 x's Gross at the new asking price.
I specialize in multi-family properties&sold many last year that had gross rent multipliers that went as
high as 21.3x's gross. The sales range for 2-6 units in SLO over the past 12 months range between
14-22x'gross.
We look forward to City Council approval &getting the property into contract.
If you should have any questions, please feel free to contact me.
Sincerely,
Steven Ferrario
Realtor
(805) 541-2888, ext. 3120
(805)215-3350
Steve@realestategroup.com
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