Off market offer on my multi family appt - is this deal worth it?

[Rashmi Nigam]

I received an offer market offer for my 50 unit building in AZ. Here are the details:

Purchase Price - $3,500,000

Earnest Money - $35,000

DD Period – 60 Days after DD items received

Closing date – After August 1 & Before September 1

Title/ Closing Costs – ALTA Survey @ Seller’s expense (if required by lender)

I purchased the building about 20 months ago and here are the numbers (back of the envelope).

Original purchase price: 2.95M

Loan amount was 1.84M

Principal paid to date is 57K

Principal down: 1.1M

Proceeds from sale - loan = 1.716M

commissions: 175K

Net in our pockets (not including closing costs): 1.525M

Gains from initial investment: 441K

We have to do a 1031 exchange to our next property. Wondering if this is a worthwhile gain to take now vs. doing a forced appreciation on the property and wait it out. Also wondering if I need to be evaluating this offer differently from how I am looking at it. Appreciate any advice as always. 

[Jaysen Medhurst]

@Rashmi Nigam

1. What was the purchase cap rate vs. what the buyer is offering? 
2. What's the prevalent cap rate in the area?
3. What's your NOI and have you improved it since purchasing the property?
4. What improvements have you made?
5. Have you pushed rents?
6. The potential $440k gain, what does that represent in terms of cash flow, appreciation, etc.? In other words, if that represents all the profit you planned to make over the next 5 years, it may be a very good idea to take the money now.

The fact that this was unsolicited makes me think you could probably get even more. No one starts with their best and final.