8th Ave8 — Creative Seller Financing in Spokane

Challenges

• 8th Ave8 had been in and out of escrow four times before the Multifamily Mason team got involved — a clear signal that previous buyers could not navigate the complexity required to close this transaction.
• The property was a heavy value-add opportunity on Spokane’s South Hill, requiring a buyer willing to take on significant renovation risk and execute a business plan that most investors would pass on.
• During the escrow process, a national title company hack disrupted title and closing infrastructure across the industry, creating an unprecedented obstacle that threatened to derail the deal entirely.
• The financing environment made traditional acquisition debt challenging for a property of this profile, requiring a creative capital structure to bridge the gap between the asset’s current condition and its post-renovation value.

Action

The Multifamily Mason team identified this opportunity and brought it directly to our client, who managed a similar property nearby and immediately recognized the upside. Our deep knowledge of the South Hill submarket allowed us to connect the right buyer with the right asset — a match that only happens when your advisor understands the block-by-block dynamics of the local market.

When traditional financing proved challenging, we negotiated extremely favorable seller financing terms that made the deal pencil for our buyer. This creative structure accomplished the seller’s goals while giving the buyer the flexibility to execute their value-add business plan without the constraints of conventional debt terms.

When the national title hack threatened to stall the closing, our team stayed proactive, working with all parties to find alternative solutions and keep the transaction moving forward. Where other deals across the country were falling apart due to the disruption, we refused to let an external event derail a deal that had already survived four failed escrows.

Throughout the process, our team was proactive at every step — anticipating issues, communicating clearly with both buyer and seller, and negotiating creative solutions to keep the deal on track.

Results

• Closed at $860,000 — $107,500 per unit — on a property that had failed to close a few times
• Negotiated favorable seller financing terms that enabled the buyer to acquire and execute their value-add business plan
• Successfully navigated a national title company hack that was killing deals across the country
• Connected the right buyer with the right asset through deep local market knowledge of Spokane’s South Hill neighborhood

Sale Details

• Property Name: 8th Ave8
• Location: South Hill, Spokane, WA
• Close Date: January 2024
• Units: 8
• Year Built: 1962
• Sale Price: $860,000
• Price per Unit: $107,500
• Financing: Seller Financing

Testimonial

“Mason’s team was invaluable in bringing this deal together and getting it to closing. We manage a similar property close to 8th Ave8, so I saw the potential as soon as Mason brought us the deal. While there were challenges during the escrow process, Mason and his team were proactive at every step and helped negotiate extremely favorable seller financing terms that, ultimately, allowed us to get the deal done. Mason and I have worked closely together for a number of years and his team continues to exceed expectations in every facet of real estate acquisition. I look forward to my next deal working with Mason and his team.”

— Royce, Buyer Client