Challenge

The buildings had been vacant for years and had become functionally obsolete. There was minimal on-site parking, poor loading, and environmental contamination in the soils. The buildings were located in an area that was evolving into high density residential and multiple zonings on the property did not support a continued industrial use. The zoning ordinance limited density through height restrictions creating an inability to justify the desired asking price. The owner needed a commercial real estate firm with the experience and market knowledge to successfully identify a buyer that could recognize the opportunity and overcome the tremendous obstacles.

Services

• Analyzed the site and competing properties
• Intense marketing campaign to local and regional developers
• Physical showings to prospective buyers
• Negotiations with prospective buyers
• Coordinated the closing process including, financing, title transfers and environmental remediation

Results

After assessing the owner’s options, Colliers concluded that marketing both properties together to high-density residential and retail developers would command the highest price. With a high-rise condominium development in-progress across the street, the neighborhood’s shift from industrial to residential enticed Chicago-based Tandem Developers to place the highest bid on the two vacant properties.

Colliers secured a buyer for the properties within three months at a price near asking, satisfying the owners wish to maximize value in the shortest period of time. The land value basis increased from $17 per sq. ft. to in excess of $34 per sq. ft. and the sale brought a new 26-story condo development to an area plagued by lack of redevelopment.

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