Memphis-based Fogelman Management didn’t know what they were getting into during the lease up of one of their 300-unit properties.
The property was under contract for unsolicited offers. And Fogelman was way ahead of schedule, able to lease 40 units to traveling nurses who were paying 1.5 percent higher in monthly rent.
But because the buyer and lender wouldn’t accept revenue from corporate leases, they had to tell the clients that they couldn’t renew their leases. It left them with 40 vacancies all at once.
“I think we got a little bit too greedy getting the lease-up done, and it backfired,” Mark Fogelman, president and COO at Fogelman, said at this year’s MFE conference in Las Vegas.
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