Loading...
HomeMy WebLinkAbout10 - Sale of 4210 River Avenue7�) CITY COUNCIL AGENDA ITEM NO. 10 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER JUNE 28, 1993 TO: MAYOR AND CITY COUNCIL BY THE CITY COUNCIL CITY OF NEWPORT BEACH [JUN 2 81993 aTs- APPROVED FROM: DEPUTY CITY MANAGER SUBJECT: SALE OF 4210 RIVER AVENUE ACTION: If desired, select Cannery Village Realty, Inc., as the listing agent for the sale of 4210 River Avenue and authorize the City Manager to execute the necessary agreements. BACKGROUND: Sale of this property was approved by the City Council and the electorate. A 1989 appraisal valued the property between $325,000 and $350,000. City Council Resolution No. 92-142 authorized the sale for a price of $350,000. An auction conducted April 29, 1993 yielded an offer of $315,000, all cash within 30 days. That offer expired before the City Council could respond. A higher sales price may be gained by marketing the property through an established real estate firm. DISCUSSION: A Request For Proposals was sent to all real estate companies in the western part of the city and made available through the Board of Realtors. The RFP asked for a proposed listing price backed by research, proposed commission, broker experience and marketing plan. Eleven proposals were received and are summarized on the attached chart. The complete proposals are available in my office. RECOMMENDATION: All the proposers are qualified and could adequately market the property. To select among them, the highest consideration is given to price and commission. A high listing price and low commission are necessary to ward against criticism that the City is not receiving the greatest value. Beyond those criteria, experience, location and marketing strategy become important. Cannery Village Realty proposed one of the higher prices and supported it with market data. Their commission is among the lowest. They are located on McFadden Square and have a large advertising sign there that lists their properties. Most importantly, one of the listing agents has built several homes in the area and will market the property to the construction community. For these reasons, they are recommended. Page 2 Secondary choices based on similar criteria would be Jacobs Realty and Balboa - Newport Realty. Proposed terms therefore would be a listing price of $405,000, a 5% commission and a 180 day listing period. KenneAJ.Deo KJD:mb Attachment \ 0 / @ \ E 0 x CL E % 2 0 c @ ° / k & © % 0 0 2 § / \ 3 \ k \ 0 S k \ '0 \ 0 \ / } 7 x O z m = a) 4-1 3 ( 2 7\ 0 c = m z / } 4 \\ t x ® \ E70 \ _0 \ \ \ S\ , 2 G S 0 0- 2 } \ \ '0 £ _ % I E = iD \ 7 / \ \ ¢ § 0 o m e m a = a$ 2 E 9 \ 70 y \)\ k / \ / \ \ \ \ \ / » ° t n x _0 m=m [ L a ° � 2 E E a % 0 a 3 \ ± \ ± / § k k \ 2 Cl) � <D cnw a> E CCX w - In a.o �� 2S E 5 \ Ko \ / w @ 0 - % \ g $ S % % % % ® S / a \ o ° 0 e R # m Cl) n m m n m n a \ # a + e < m e IL a m a a a k c ° 8 / / $ / S $ $ / J $ 0/ n n « CD o co m r n 0 a3 \ > E m S = _ 0 U \ o k \ \ \ \ ƒ ƒ ) jIDn / .F ± 2 _0 \ \k co \ \ ƒ \ \ \ k / f r- « . e rn / E / 2 o �- I kn \§ / o oc\[oE/\\oI/%2@=c c ƒ / Co 3 5 / / 7 � $ / �/ \ x & 3 \ \ \\ /4\/E� CZ 0 /k�0 0 \kMCD Z�S2fEee$%�o a) 3:C/$ m�-°6 c\ 5g 0 k}2%I///4\d?IC/\/£/\Ij \/ m