In the second quarter of 1996, The Stroh Brewery Company, based in Detroit, announced the closing of several breweries.  Due to excess capacity in the malt liquor industry, Stroh Brewery placed a restriction on sales to competing breweries.  One of the plants to be sold was the former G. Heileman Brewery in Baltimore owned by Stroh Brewery.  The plant produced 500,000 gallons of beer per year.

Challenge

• Plant and equipment dated from 1960, had not been modernized.
• The 700,000-square-foot 49-acre complex consisted of an eclectic mix of warehouses, bottling plants, basement storage, brew tower, power plant, and vintage offices.

Services

• A team from Baltimore and Detroit composed a “time-sensitive” marketing strategy.  A comprehensive offering package addressing all salient issues associated with the property was prepared.
• A prospect list of over 4,000 local, regional and national companies was compiled and edited.  The list was divided into appropriate regional locations.

Results

• Within seven months, several offers were generated from Massachusetts, Delaware, California and Maryland ranging from $3 million to $7 million.
• Colliers Pinkard's Industrial team sold the property to a Maryland-based flour mill, which redeveloped the facility for their use. 
• Final negotiations resulted in a sale price of $8.2 million.

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