Property: Element 436
# of Homes: 74
Developer: River Range LLC
Location: Koreatown
Website: element436.com
Headline Description:
JUMPSTARTING SALES AFTER OPENING STALL
Overview/Challenge:
Element 436 launched in the summer of 2016 and after an initial flurry of activity and sales interest died off. The development team was targeting 4-5 sales per month and was only achieving 1-2.
Results:
Our team worked with the developer/broker to identify a full-time on-site sales team with deep ties to the community and an extensive network of brokers. Slavik Consulting worked closely with the new sales agents to determine messaging that would best resonate with the buyer profile and to identify marketing mediums that would be most effective. We created a marketing plan and messaging strategy that was specific to this Koreatown project. We began an extensive broker outreach and open house program that quickly resulted in the sales of an additional 15 homes over 6 weeks.
Analysis:
Our close work and communication with the sales steam allowed us to leverage their micro-market expertise with our marketing expertise to craft a marketing and communication strategy that increased sales to meet the developers absorption goals.
Property: Enclave at seabridge
# of Homes: 42
Developer: river range LLC
Location: Oxnard, CA
Website: theenclaveoxnard.com
Headline Description:
setting new bench mark for area price points
Overview/Challenge:
River Range LLC purchased the final phase of a master planned community at Seabridge in Oxnard consisting of 42 homes. The waterfront location, new construction and spectacular views demanded a market setting price point. The marketing plan and execution needed to support this goal while achieving sales absorption of 3-4 homes per month on a limited marketing budget.
Results:
Through close communication with the development and sales teams we crafted a series of campaigns built around model homes and limited incentives and supported by open houses. This created urgency for interested buyers and allowed the project to achieve both its pricing and absorption goals.
Analysis:
Our development of strategic messaging and incentives allowed us to create urgency in a market where there is little. Limiting incentive offers drove buyers and took inventory out of the market to further enhance a sense of urgency for buyers and allowing upward movement on pricing.
Property: Evo
# of Homes: 311
Developer: South Group
Location: Downtown LA
Website: www.evo-south.com
Headline Description:
Southern California’s best selling condo building
Overview/Challenge:
Property delivered in September of 2008 and opened to the public the weekend Lehman brothers declared bankruptcy. The building was 60% sold at TCO and saw a 90% cancellation rate with only 12 of the original contracts closing. The goal was to pay off the construction loan as soon as possible, in addition to 200 sales.
A series of sales campaigns were launched beginning in February of 2009 including a 72 hour sale promoting $3M in price reductions and units starting form $299K. A 1-bedroom sale, A 10-10-10 sale and an increased broker coop followed this as high as 7% for a limited amount of time.
As sales absorption improved, inventory was held back and prices began to rise in line with a phased release strategy. This release strategy was designed to maximize the pricing on the remaining units so that the equity partner could recover as much of their investment as possible.
Results:
The sales that closed between February 2009 and October 2010 resulted in an average price of $496,000 and an average $/sqft of $385. Sales between November 2010 and the present average $875,000 and average $625/sqft.
Analysis:
The phased release strategy implemented accomplished the clients goals of fast absorption to pay off the construction loan and then changed and implemented to maximize prices on remaining inventory.
Property: LUMA
# of Homes: 236
Developer: South Group
Location: Downtown LA
Website: www.luma-south.com
Headline Description:
DOWNTOWN LA’S HIGhEST $/SQFT SELL OUT BUILDING
Overview/Challenge:
Building delivered in late 2006 as the market was turning. When closings began, we saw over a 30% cancellation rate. The sales team needed to re-sell approximately 100 homes as the market was worsening. In addition to the challenging real estate market, the lending market was also changing and becoming more challenging.
To stay ahead of the other projects still selling in downtown LA, We worked with the developer to adjust pricing, negotiate offers and worked with the broker community. Because other downtown projects were not taking these steps, LUMA was able to outperform the market and hit seller goals.
Results:
LUMA sold out in the middle of 2007 just as the market was taking a worse position. The end result of the LUMA sell out was an average purchase price of $695,000 and $595/sqft.
Analysis:
Being ahead of the market changes allowed LUMA to sell out quickly and at a price that accomplished seller goals on absorption and price.
Property: Park Terrace
# of Homes:
Developer: The Carlyle Group
Location: Downtown San Diego
Website: www.parkterrace.com
Headline Description:
QUICK SELL OUT OF FRACTURED CONDO BUILDING
Overview/Challenge:
Park Terrace originally went to market in 2004/2005 when the San Diego market was red-hot. The building closed about 60% of the homes and then rented the remaining homes. In 2008 The Carlyle Group decided to sell the remaining homes. The project had been out of the market for a few years and was a rental building. We were charged with turning interested renters into buyers, noticing buyers of the unit sales and selling the building out as quickly as possible.
Results:
Our team used the unit turn over schedule to create urgency for buyers. We only had a handful of units on the market at any one time so selling out certain floor plans quickly was easily accomplished. This allowed us to push prices up every few months as more units turned over and fresh buyers came into the market. Our outreach to the broker community was substantial and ongoing. We had to create a new program for the brokers and change the perception of Park Terrace in the broker community.
Analysis:
The sense of urgency created by the small release of units allowed us to implement a phasing strategy that allowed for increased values. The outreach to the broker community helped keep marketing costs in line and gave the sales team a chance to develop broker relationships that resulted in 65% of the sales over the course of the project.
Property: Smart Corner
# of Homes: 301
Developer: CJUF Canyon Johnson Urban Fund
Location: Downtown San Diego
Website: www.smartcorner.net
Headline Description:
Challenged project finally sees success!
Overview/Challenge:
CJUF was part of the original development team on Smart Corner in San Diego; the project began development in 2005 and delivered in 2007. Of the original 301 homes, 148 sold and were closed. CJUF ultimately decided to rent out the remaining homes until the market improved. In late 2011, CJUF engaged Polaris Group to help them sell out the remaining homes. Due to the length of time the project had been on the market and its location on the edge of East Village the project was viewed as challenging. The ownerships goal was to sell out the remaining homes in 13 months.
Results:
Polaris came on board, opened a sales office in four days and began the sales effort just before the holidays in 2011. In January of 2012 Polaris launched the first of a four phase sales strategy with the goal of selling 8-10 homes per month. At the end of the first release on February 5, there were 40 homes in contract. By the end of April 2012, 100 of the 153 homes still available were in contract.
Analysis:
The analysis of the San Diego market provided by Polaris to CJUF was integral in providing a comfort level to take the project back to market. Our implementation of the S|T|A|R strategy resulted in a sales pace of 18 homes per month, well in excess of the client goals.
Property: W Hollywood residences
# of Homes: 143
Developer: HEI Hotels International/Gatehouse Capital
Location: Hollywood
Website: www.whollywoodresidences.com
Headline Description:
Jump starting a stalled sales program
Overview/Challenge:
143 Units
1bdr, 2bdr and PH homes
920 sqft-5000 sqft
W Hollywood residences delivered to market in early 2009. Between January 2009 and July 2011, only 12 homes closed. There were a number of factors contributing to this anemic sales absorption. The building pricing had not been adjusted to reflect the current sales market with prices at $900/sqft and area comps at $450/sqft. The homes had HOA dues at $1.02/sqft vs. $0.60/sqft for comps. Finally, the resale team in place had recently been replaced with a sales and marketing company from Canada specializing in international vacation and resort sale. However, they had no local on the ground knowledge.
With the W Residences having been on the market for an exceptional period of time without notable sales traction, there was a desire on ownerships part to kick start sales and turn both the sales effort and the reputation of the project around. When Polaris was hired, the project was less than 10% sold and the owner’s goal was 30% by 2011 year end.
Results:
Slavik Consulting was hired to launch the W broker program and to consult for the ownership, HEI Hotels on pricing, sales and marketing strategies. We worked with HEI to restructure the unit pricing so that it was at market. Slavik Consulting worked with the HOA dues to break them down into numbers buyers could manage and we developed a long-term consistent broker strategy.
Within our first 30 days of work, the new model generated 16 new contracts bringing the project to 20% sold. We created a broker event program that opened up with over 100 brokers in attendance. A half dozen off-site broker presentations were set up for the on-site sales team to ensure the W Hollywood sales message was getting into the market.
Analysis:
Local market knowledge and local relationships are key components in the success of any project. Our proven broker outreach strategy produced the intended results for the project through this initial re-launch. Our local market knowledge allowed us to guide the ownership to a pricing model that worked and our experience in overcoming buyer objections gave us the experience to present solutions to buyers concerns. Slavik Consulting posseses the relationships and local knowledge to ensure project success.