The Asset
A 270+ unit multifamily community in Fayetteville, North Carolina, constructed in the 2010s. A standout asset in the seller’s portfolio, the property demonstrated strong revenue growth potential, with lease trade-outs ranging from 20% to 40%.
These fundamentals created an attractive investment opportunity for buyers seeking a well-positioned multifamily asset with continued upside.
Location: Fayetteville, NC
Property Type: Multifamily
Unit Count: 270+
Year Built: 2010s
The Challenge
The seller wanted to capitalize on the property’s value while protecting its existing equity and avoiding costly loan prepayment penalties.
Achieving these objectives required more than securing an attractive purchase price. The transaction needed to accommodate an assumption of the existing loan while attracting a financially capable buyer willing to commit substantial equity.
The challenge was to identify the right investor, potentially beyond the property’s traditional buyer universe, and negotiate terms that would deliver both financial value and transaction certainty.
The MMG Appproach
MMG’s Cross Market Capital Team developed a national marketing and transaction strategy designed to expand buyer interest, identify qualified investors, and protect the seller’s financial position.
Expand the buyer universe. MMG leveraged its national network to introduce the property to investors across multiple markets, reaching groups that might not otherwise have considered an acquisition in Fayetteville.
Generate competitive interest. The marketing process produced 165 confidentiality agreements and 12 offers, creating meaningful competition among prospective buyers.
Identify an unconventional buyer. Among the interested investors, MMG identified a buyer with no existing property holdings in North Carolina or the Fayetteville market. Despite having no prior presence in the region, the buyer recognized the property’s investment potential and demonstrated substantial financial capacity.
Structure for financial certainty. MMG helped facilitate a transaction built around the assumption of the existing loan, supporting the seller’s goal of preserving equity while avoiding prepayment penalties. The selected buyer committed 55% equity and provided a $3 million nonrefundable deposit, reinforcing the strength of the transaction.
By combining cross-market buyer access with a transaction strategy aligned to the seller’s financial objectives, MMG uncovered an opportunity that extended well beyond the property’s established investor market.
The Result
MMG identified a buyer new to the state who committed $3 million in nonrefundable earnest money, while the loan-assumption structure preserved $3 million in seller equity.
- $3M in seller equity preserved
- $3M nonrefundable buyer deposit
- 55% buyer equity commitment
- 12 competitive offers generated
- 165 confidentiality agreements
The transaction demonstrated how expanding the buyer universe can deliver more than additional offers. It can uncover investors with the financial capacity and willingness to execute structures that address a seller’s specific needs.
By connecting a high-potential asset with an unexpected source of capital, MMG helped the seller pursue its financial objectives while securing a substantial commitment from a qualified buyer.
The result reinforces the value of MMG’s cross-market approach: finding the right buyer, not simply the most obvious one.
