Colliers Broker Keeps Deal Alive Over a Year
Fire, Other Setbacks, and Extended Escrow Could Not Halt Sale on South El Monte Building
In what initially looked to Colliers broker Peter Lee like a simple listing of an ordinary industrial property in South El Monte – and an even more ordinary sale – turned into one of the longest escrows of his career and one of the most challenging. But the Ontario-based broker managed to close the sale more than a year after it went into escrow.
After a devastating fire damaged the existing building, the building’s investor-owner decided to re-build and modernize the 1827 Floradale Street structure, adding 3,000 square feet of additional warehouse and office space that brought the total square footage to 10,526 of light-manufacturing space, upgrading the building overall and, in the process, adding value to the property.
“When all was said and done, this turned into a quality deal for the buyer,” said Lee. “Of course, despite the rise in value that the new construction brought to the property, we sold it for the original offer we had accepted before the uptick in the market. This became a very smart purchase for the buyers because of their patience with the process and their knowledge of the property’s rising value.”
Lee, who had fielded more than 100 inquiries about the building during the escrow process from other potential buyers, said the new urban in-fill structure has upgraded the entire industrial area of South El Monte where it is located. Among the features that made the buyers wait more than a year for the property other than the price, was its location close to the ports of Los Angeles and Long Beach, its direct access to the Pomona Freeway (State Route 60) and Interstate 605, as well as access to nearby rail and air transit hubs.
With a fenced yard for security and heavy industrial power throughout, the building is an ideal light-manufacturing center. Colliers’ Lee represented the building’s investor owner. Buyer of the property was represented by Jon Tran of Masters Realty. Total consideration was $1.1 million.