The Challenge
A family-owned development company acquired a 65,000sf, 3-acre property undergoing conversion from a manufacturing facility to an office building. Due to liquidity needs, client required expeditious profitable disposition, ideally with a long-term property management
The Solution
Assembling a team that could assess values and assess impact to earnings was accomplished with our broad connections and relationships on 4 continents. The process was set-up to ensure the highest integrity and standards for diverse company department needs including Tax, Accounting, Treasury, and corporate real estate departments. Process timelines and milestones were set to ensure success by keeping resources and teams on track.
The Results
Drawing on our contacts in the field, we uncovered an investment group, who agreed with our scenario modeling that the best alternative use was as a Hospital. In combination with the current cash flow and this novel upside potential, we successfully closed in two years, while resolving lingering tax and environmental issues. A 1031 exchange added additional value to the transaction
