The Florida Distribution Center contains about 1,000,000 square feet of cold and dry storage in the 21 million square foot Sarasota industrial submarket.  The tenant, Winn Dixie, declared bankruptcy and ceased paying rent in this and several other locations owned by a consortium of bond holders, serviced by Wachovia Bank.  The building’s location outside the bulk distribution corridor and its design for a single tenant created significant lease up risk for future owners; it could not be demised to meet the needs of even the largest local tenants.  Wachovia took control of the property at foreclosure in late September 2005 at a price of $27 million.  The owners required disposition in a time frame of less than six months without contingencies for change of use.

Challenge

• Tenant vacates a million square foot distribution center in a twenty-one million sf market, over 50 miles outside the major distribution corridors.
• Building is designed for single user, not divisible into smaller units creating significant lease up risk.
• Property goes into foreclosure, the largest foreclosure in the history of  Sarasota Couinty.
• In disposition, the servicing bank must meet the financial, timing and reporting requirements of a consortium of bond holders.

Services Provided

• Strategic planning before and after the foreclosure.
• Marketing in a defined time period with an intense campaign.
• Web site creation, document management and distribution.
• Coordination with servicing bank, legal and property management team.
• Comprehensive reporting and management of the sales process.

Results

Colliers Arnold managed a defined time marketing process, exposing the property to over 11,000 potential purchasers.  We provided access to complete property data on a secure web site with 35 prospects signing confidentiality agreements.  We worked closely with the Wachovia legal team and with the buyer to facilitate the sales process.  The property went under contract and was sold within 3 months of the foreclosure.  Back up offers were encouraged and marketing continued to assure a timely closing mitigating re-trade risk.  The bank and the bondholders met their timing and price requirements with $30 million sale.

Sales Team:
Edward Miller, CCIM, SIOR
Dolores Seymour MCR, CCIM, SIOR
Christopher Leonard, CCIM
Colliers Arnold

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