Case Studies

reverse exchange

Problem:  A construction company was looking to move its headquarters and located the perfect building; however they needed to market and sell their existing mixed-use building without taking a tax hit on the sale.

Solution:  We helped facilitate a reverse exchange to acquire their new headquarters, then worked to market and find a buyer for their old location.  We worked within critical timelines to ensure a smooth transaction and avoid capital gains through a deferred exchange.

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sell or hold?

Problem:  Our client-partner had debt that was about to mature and was unsure whether to hold onto the property and refinance or sell and do a 1031 tax-deferred exchange.  In addition, several tenants had leases that were set to expire just prior to the maturation, complicating the refinancing process.

Solution:  We analyzed the data and determined the best strategy was to hold onto the current property and refinance.  We proactively approached the expiring tenants and offered concessions to renew at a higher rental rate on a blend/extend lease contract.  We were able to secure the income and valuations to refinance the debt and at a lower rate than the previous loan!

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environmental

Problem:  A large national chemical company was looking to dispose of a former chemical site out of the portfolio, which had multiple environmental issues and was only halfway through a 30-year remediation process.

Solution:  We worked on behalf of the seller to find a suitable buyer that understood the remediation process.  We coordinated with multiple stakeholders to create a remediation fund, mitigate buyer risk, and close the deal.

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zoning issues

Problem:  A property in the portfolio was becoming vacant, but the city changed the zoning of the building, making it legal non-conforming.  This limited the available tenant pool to specific uses and put the investment at risk.

Solution:  We worked on behalf of the ownership with legal representation to petition for a tenant use that eventually was approved.  The tenant paid above-market rents and the investment was secured with an exceptional income for another 10 years.

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