The owners were distressed because of a technical issue and needed resolution within a very compressed time line. Understanding the dynamics of the various choices they faced, compounded by the immediacy within which they had to proceed and the expectation of a positive outcome, we went to work. I prepared a Broker Opinion of Value and marketing plan to show how we would achieve the Owner’s goals, as described.
The property was fully occupied, yet neither the owner nor the long-term tenant had a valid lease at the time of the listing. Our expectation was the likely buyer would be an investor and would specify lease terms to support their offered price, which would be a consideration in the Owner’s review of the offers. Accordingly, I recommended the leases remain month-to-month, yet discussed market conditions and what they may expect to see from prospective Buyers.
Though our primary plan was to create an offering memorandum suitable to elicit investor purchase offers, we simultaneously created materials showing the property available for a user purchase. Given the month-to-month tenancies and flexibility of the owner, along with a deadline, we wanted to push on all fronts simultaneously. We immediately contacted a list of known investor prospects, posted it as an investment property, and initiated a marketing campaign using proven methods. We also created materials depicting the property available for an owner user with the potential income from one of the tenants remaining.
We received offers within the first week from various investors, and as predicted, their specified lease requirements varied as did the offered prices. The unexpected result, however, was that an owner/user also engaged with an offer. At my recommendation, we went to all parties requesting their best proposal and informed all that they had competition. The owner/user purchaser offered the Asking Price which was the high end of my Opinion of Value and shortened their inspections to 15 days. All parties negotiated for what was most beneficial to them; length of time the Seller would remain after closing, when the Buyer would take possession, and a new lease negotiated for the Tenant that would remain in the space after the sale closed. We completed the transaction at the asking price within the agreed time line described when the assignment was first discussed, and all parties, Buyer, Seller and Tenant, benefited from a successful execution.
Dan Miller, Director, Land & Industrial Services Southwest Florida
JoAnn Greenlee, Marketing Coordinator Southwest Florida
15,000 SF gross area
12,000 SF enclosed
3,000 SF canopy / roof
2,200 SF of office/showroom
Included 2 lots totaling 1.59 acres
-Soccer Palace – 8,000 SF
-Owners businesses – remainder