Property purchased and sold a year later at lower price. Why would someone do this?
A commercial property near me was purchased a year ago for $2.5m last November. Last week it went up for sale and sold within 3 days for $2.3m. The NOI was higher by a small amount due to the yearly lease increase.

What would be the reason for someone to buy and hold it for one year to lose money and waste time?
[{"id": "ixumwuh", "text": "Did it come with chattel?", "replies": [{"id": "ixun8e4", "text": "I dont believe so", "replies": [{"id": "ixur0eg", "text": "What about cattle?", "replies": [{"id": "ixv0wnb", "text": "Maybe a battle", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ixunqr7", "text": "Divorce?", "replies": [{"id": "ixuofip", "text": "Yes please.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ixuppra", "text": "Uhhh, shit happens and the market is worse.", "replies": [], "depth": 1}, {"id": "ixupq5y", "text": "Not enough information to tell for sure.\nCould be a value add deal with a 1 year bridge loan. If they didn't lease up vacant space, they could be forced to sell with the loan maturing. Or tenant has a lease expiration and the owner wasn't able to get a big rent increase they were hoping for.\n\nIn this small deal size I see lots of hard money lenders that offer 12 month terms that may need the buyer to bring significantly more cash to refinance into a permanent loan, which the buyer didn't have.\n\nAnother guess is property was bought by the tenant, but realized they were running low on cash and sold it.", "replies": [], "depth": 1}, {"id": "ixurd44", "text": "Could be that seller needed cash fast for something else. You win some you lose some in life. We can speculate all we want but you will never know unless they tell you why.", "replies": [], "depth": 1}, {"id": "ixus8uj", "text": "They know the tenant is about to blow up", "replies": [], "depth": 1}, {"id": "ixuu15d", "text": "Is the whole property in tact?  Locally here I\u2019ve seen at least 12 properties this year get subdivided and sold off for less than asking. \n\nExample: 22,000 foot lot with structure. Subdivided into 12,000 with structure and 10,000 buildable lot. 12,000 relisted at 95% sale price. 10,000 started construction", "replies": [], "depth": 1}, {"id": "ixuud2m", "text": "There\u2019s a million reasons the seller could have had. The only constant is whatever IRR they were considering a year ago when they bought it was a 99.9% chance based upon a different exit than they ended up doing. Life comes at you fast, especially in a slowing market.", "replies": [], "depth": 1}, {"id": "ixuwpkb", "text": "Sometimes you need to liquidate and move to a better opportunity.", "replies": [], "depth": 1}, {"id": "ixuydfp", "text": "What kind of question is this? There could be a million reasons.", "replies": [{"id": "ixvqk6m", "text": "Oh yeah??!? Name 675,000 of them.", "replies": [{"id": "ixwr8jk", "text": "Ok, I\u2019ll list them. Here\u2019s #1: I\u2019ll try to not be too graphic as this is a family forum. \n\nThe seller (let\u2019s call him Norman) bought the property and had grand plans for it, but then found an odd lump on their left testicle. Luckily Norman is the kind of guy who is really diligent about his health and he had it checked out quickly. Norman booked a doctors appointment. It was a little frustrating because the earliest appointment Norman could get was in a week. It was an agonising week. Anyway, the appointment finally rolled around and off Norman went. Thar morning, the doctors surgery was really busy and the wait was a little over 56 minutes. Norman spent that time working through a coatings spreadsheet that he had been working on to help him consider what it would cost to renovate his newly purchased property. He was interrupted when his name was called. This was the moment! In he went. \n\nTurns out it was nothing, just an inflamed sweat duct. That was a relief. The doctor did notice something else though. Norman\u2019s penis was\u2026 quite an odd looking. Kind of like a premature baby mole, but with no teeth and only one eye. The doctor asked Norman if he had noticed that. He had indeed. It was probably one of the reasons why, when Norman was a teenager, he just couldn\u2019t get past third base. In fact, he would always falter somewhere between serving and third. Come to think of it, he never actually made it into second base. The closest he came was with Sally Smith. That relationship had so ouch potential and he was convinced he would make a home run, until half way through a post movies fondle season in the back of Norman\u2019s dads Toyota Cressida, Sally caught a glimpse of Norman\u2019s baby-mole penis and hastily made her excuses. \n\nAnyway, once Norman came out of the doctors surgery, there was nothing but relief. Aside from his baby mole penis that wasn\u2019t great at getting him from second to third base, there was nothing serious going in. \n\nDuring the week that Norman had to agonisingly wait to get his nuts checked out, he had a bit of a life altering epiphany. He realised that his \u201cFIRE\u201d philosophy was all good and well if he remained healthy, but life is in actual fact way too short, and he really does have to live a bit. \n\nSo Norman decided to sell all of his properties and release his equity, even if it meant making a bit of a loss on his most recent purchases. He still had plenty to life a full life. He went and bought himself a Ford Ranger, a caravan, and started his lap around Australia.\n\nStay tuned for reason #2", "replies": [{"id": "ixwzw1w", "text": "my fire friend live desperately boring lives and are tight wads. I'm not not well off, but I approve of this message.", "replies": [], "depth": 4}, {"id": "ixxz5z8", "text": "This made my week", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ixv2w6y", "text": "Could be anything. They could have a partnership dispute. May need cash and to liquidate fast, etc", "replies": [], "depth": 1}, {"id": "ixvaubr", "text": "Cap rates expanding", "replies": [], "depth": 1}, {"id": "ixvchsu", "text": "Divorce, death, shifting market conditions, maybe they needed money to pay debt or we\u2019re trying to limit the amount of debt they have going into a recession. Could be a million different reasons", "replies": [], "depth": 1}, {"id": "ixvi07u", "text": "How can they slap", "replies": [], "depth": 1}, {"id": "ixviroj", "text": "Oh my sweet summer child, if only you knew that property values can go down\u2026", "replies": [], "depth": 1}, {"id": "ixvk5kc", "text": "Interest rates for one.", "replies": [], "depth": 1}, {"id": "ixvq2p0", "text": "The value change isn\u2019t shocking, that\u2019s only a 50bp +\\- change in cap rate. \n\nNo one buys and expects to sell for a loss, but there a ton of reasons they could have needed to sell it. Plus if they bought it with 1031 funds to begin with, they could easily still be money ahead.", "replies": [], "depth": 1}, {"id": "ixvsspu", "text": "I don\u2019t know why he decided to sell, but expense inflation has outpaced most rent escalation structures in the prior year. Maybe gross rent was higher at the top line but not NOI.", "replies": [], "depth": 1}, {"id": "ixwb8oa", "text": "Could be any reason. Maybe the owner lost a bunch of money in stock market / other investment. Who knows", "replies": [], "depth": 1}, {"id": "ixwcoe2", "text": "Maybe they parceled the land? Made money, and then sold the rest? That\u2019s a possibility", "replies": [], "depth": 1}, {"id": "ixwsyql", "text": "Short term vs long term gains, but something bad happened b/c no one wants a loss. My guess, they are overextended and have to sell or they'll bankrupt.", "replies": [], "depth": 1}, {"id": "ixwudnw", "text": "They needed cash now and had to liquidate their position", "replies": [], "depth": 1}, {"id": "ixxnudo", "text": "Cap rates have gone up and they probably have a short term loan they can't get out of. Going to see a lot more of these", "replies": [], "depth": 1}]