Turning Challenges into Opportunities: The Sale of a Rural 200K SF Warehouse
In the realm of commercial real estate, certain properties pose unique challenges that require a tailored approach to marketing and sale. Such was the case with a bank-owned, 200,000 square foot warehouse in a rural location, recently reclaimed from its original owner. The property, with a dilapidated roof, complex power configuration issues, and stripped of essential equipment including copper wiring, presented a tough sell. Here’s how we transformed these challenges into a successful transaction.
Client Challenge:
Aquesta Bank needed to offload this rural warehouse quickly but wanted to ensure a return on their investment. The property’s condition and location added layers of complexity to achieving a quick and profitable sale.
Action Steps:
Performed Valuation: We started by assessing the warehouse's value against local and regional rural warehouse comps. This careful analysis considered the property’s unique configuration, condition, location, and the current market demand to set a realistic price.
Best-In-Class Marketing: Recognizing the need to showcase the property compellingly, we prepared a high-end marketing package. This included drone photography and detailed information about zoning, topography, and utilities. The property was then actively promoted across major CRE platforms such as Costar/Loopnet and Crexi.com.
Proprietary Database: Utilizing our proprietary database, we targeted relevant developers, users, and brokers—focusing on those who might not typically partner with other brokerages, thus expanding our reach.
Coordinate Roof Assessment: Understanding the critical nature of the roof’s condition, we accompanied a trusted roofing contractor to evaluate it. This assessment helped us advise potential buyers on both short-term fixes and long-term remediation options.
Diligent Negotiation: Leveraging our data-driven valuation, we engaged in tough negotiations, ensuring that our client’s interests were well-represented and that they received a fair market price.
Value-Added Results:
Despite the complexities, our comprehensive and proactive approach attracted a well-qualified local buyer who was able to close quickly and at the market price. The sale not only removed a burden from the bank’s "books" but also ensured they recouped their investment.
Testimonial: Gary Gallo, Senior VP at Aquesta Bank, remarked, "John Eckley with Meybohm Commercial had our back the whole way. His hustle from end-to-end was undeniable. John worked hard on the front end to analyze comparable rural warehouse properties to accurately assess a likely sales price range, pulled together a thorough and professional marketing package, frequented the rural location many times to meet contractors and prospective buyers, and worked diligently to get the property in front of as many qualified buyers as possible. This was no easy task, and John rolled up his sleeves and just made it happen.”
This case exemplifies how, with the right strategy and determination, even the most challenging properties can be successfully marketed and sold. Through expert valuation, strategic marketing, targeted outreach, and diligent negotiation, we turned potential obstacles into a successful sale, demonstrating our commitment to achieving the best outcomes for our clients.
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