Challenge

REA was retained by the owner to its warehouse building at 4111 Ellison. This consists of 31,000 square feet in three bays with five dock-high and one drive-up door. To sell the vacant building, the owner would have had to realize a substantial discount in price, which was not acceptable. Therefore, it was necessary to identify Tenant or a User to maximize the value for this project.

Solutions

REA canvassed the market utilizing our proprietary data base in search of a creditworthy large tenant or user to occupy a portion of the vacant facility. A user was identified in the immediate sub-market that had outgrown their existing facility and had interest in leasing a portion of the vacant space. After negotiating lease terms and construction requirements, our team was able to show the potential tenant how they would benefit by purchasing this project.

Results

A successful sale was completed, and the buyer immediately occupied the first two bays totaling 19,600 square feet of the project. REA was then retained to lease the balance of the building. Within 60 days a Tenant was identified and occupied the balance of the building creating a substantial, positive cash flow for the new owners.