Asset: 37,500-square-foot office building
Location: Doral, FL
Sale price: $9.97 million, or $266 per square foot
Challenges: This single-tenant property had a lease set to expire in two years, with the potential risk of becoming 100% vacant. The risk was exacerbated by the fact the tenant’s new model of locations called for a smaller footprint. This basically eliminated any possibility of financing; as a result, it reduced the pool of prospective buyers to investors able to do an all-cash transaction. In addition, there were a number of disputes with the adjacent property owner and also with the association that this asset was a part of. Many prospective buyers did not want to get involved in potential problems that could take years and significant amounts of capital to resolve.
Outcome: Alex reached out to his international contacts and was able to identify a high net-worth investor from Brazil who was particularly attracted to single-tenant properties. Alex was able to articulate to this buyer the attractiveness of this tenant and the likelihood of them renewing the lease based on their performance at this location. More importantly, he was able to provide evidence that this area was continuing to flourish and the building could command rent at even higher rates should this tenant ever leave. Also, Alex had to actively negotiate with the adjacent property owner to help resolve a property tax issue. Alex assisted with the resolution of pending association charges that were being allocated to this property. Overcoming the multiple challenges allowed Alex to successfully close the deal.