Challenge

City National Bank had recently taken back an incomplete shopping center development of 28,533 square feet in a distressed market. Submarket vacancies exceeded 20% and included several unimproved properties in the area. The lender was a subsequent possessor of the note, after the first lender was taken over by the FDIC.

City National Bank engaged Sperry Van Ness/ Team Southwest to manage the completion of the construction and position the property for sale.

Action

Team Southwest assisted in securing a local contractor to complete the construction of the shopping center. They managed the improvements during the process and simultaneously created a targeted marketing plan focusing on, both public and private regional and national investors. Team Southwest strategically marketed this special asset without setting a specific market price. This creative approach resulted in securing seven offers. These offers established a market value for City National Bank to write down the existing note and identified an eventual buyer.

Results

The development of the shopping center was completed and the property was successfully sold at a 7% capitalization rate. The resulting price was well above the then going rates for similar properties. Through Sperry Van Ness / Team Southwest’s proactive, national marketing campaign a Boston-based buyer was ultimately secured.

Challenge

A longtime client made the decision to sell a property leased to Circle K Corporation. The lease was a (NNN) triple net lease with only eight years remaining. With the limited time until expiration, financing was an issue and required a buyer who had all cash or one who had substantial equity. This significantly reduced the buyer pool.

Action

Our team created a targeted marketing plan focusing on private local and national investors.
We used our extensive investor and broker database and the Sperry Van Ness national marketing platform, along with exposing the property on all major web portals. In addition, we implemented an old fashioned targeted cold calling campaign.

Results

We generated interest from over 100 potential investors and spent considerable time weeding out those investors who were unwilling to meet the seller’s expectations. We eventually located a qualified local buyer who was confident they could replace the tenant, if necessary. As a result, we were able to meet the Seller’s expectations and the Buyer obtained an
acceptable return and a well-located property.