Assignment
Pacific Real Estate Partners, Inc. Investment Team was retained to sell the vintage 4th & Pike Building by a local partnership of five individuals who had owned the building for 40 years.
Objective
The partners recognized that the building was in need of major capital improvement work. They also recognized that the management responsibility might soon be passed on to the next generation laving these items to them for resolution. As a result, they hoped to capitalize on the strong market conditions in the Spring of 2007 by finding a buyer that saw the building as a value-add opportunity.
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Challenges
The two major challenges in marketing the building were (1) a changing financial market in mid-year 2007, and (2) unknown repairs and capital items, including two underground tanks that were discovered during due diligence.
Results
In the uncertain days of late 2007, many property sales failed to close and many buyers disappeared from the landscape. The buyer selected for the 4th & Pike Building had the needed combination to close on the deal, significant experience with older buildings and a strong banking relationship. With only a slight delay to obtain required permits, the building closed in early 2008.
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