Challenge

SKF USA, a global company that supplies rolling bearings and seals, was in need of selling its Aiken, SC facility. The building was an outstanding 302,668 square foot facility on 50 acres. At the time it entered the market, the building was only nine years old, fully air-conditioned and featured high-ceiling space with high quality construction and an exceptional appearance. Notwithstanding all of the selling points, the property had been listed for sale for 3-1/2 years prior to Don Moss and his colleagues's appointment as the listing agent. The original listing price was $10,900,000. It then lowered slightly to $9,900,000, which still was very high priced for logical buyers.

Strategy

The first and most important strategy that Don Moss and his colleagues devised was a comprehensive pricing strategy. Although SKF USA wanted the best dollar possible, in the midst of a deep recession, they understood the necessity to be in line with the market, in turn establishing a much more realistic asking price. With Don Moss and his colleagues's recommendation, the building was listed at $7,900,000 or $26.10 per square foot. The strategy behind this price was that it was still high enough to obtain top dollar, if the ideal buyer existed, but not so high as to scare away potential, general market buyers, who would have to make the normal compromises.

Services

On the onset of the project, Don Moss and his colleagues commenced their normal marketing steps, including canvassing of companies in and around Aiken, coordinating with the local and state development organizations, and contacting of national and international companies. This created activity and developed prospects. When MTU Detroit Diesel became a prospective buyer, Don Moss and his team began to heavily market the building and its location to ensure a good deal for all parties. Don Moss and his colleagues provided CAD drawings to MTU Detroit’s purchasing manager, conducted multiple tours, arranged an inspection tour, and provided information on state and community incentive packages, demographics, and building data.

Results

After deliberating over multiple locations in North Carolina, South Carolina, and Virginia, MTU Detroit Diesel chose the Aiken site as its new headquarters. The next step was a negotiating session at MTU Detroit’s headquarters. It was followed by counter-proposals and new offers. The sale closed just after 10 months after Don Moss and his team’s appointment.