Case Study – Industrial Facility, Mississauga, Ontario
Many investors and real estate professionals know the saying that “a building is only worth what someone is willing to pay for it.” The only problem is that each Buyer has their own criteria with differently weighted values and features they are looking for.
Some are constrained solely by price or yield, while others are willing to pay a premium for location or access to transportation or labor pool. No matter what you are positioning to sell, there will always be tiers of interest; each based upon the end use of the product.
Therefore, when selling a property, one should try to find a Buyer who sees the most value, or who can benefit the most from purchasing said asset. So the question becomes, “how can we find or attract this pocket of buyers?”
As you will read below, we were able to highlight the key features of a property to execute a sale to the perfect User.
The Challenge
Team Toronto was tasked with the sale of a manufacturing facility with heavy power and a 3-acre storage yard. The Property was located on a corner lot with the excess land at the rear being used for trailer parking. A key feature of the asset was the flexible M2 zoning, which would allow for a wide range of permitted uses, and positively impacted the value of the land.
As we previously stated, leveraging the pre-existing features as strengths would help us attract the perfect buyer, as well as maximize the property’s value to the Seller. In running our process this way, we aimed to create a win-win scenario for all Parties involved.
Features:
- Approximately 60,000 SF
- M2 Industrial Zoning
- 18’ Clear Height
- Excess Land
- Truck Level Doors
- Heavy Power
Transaction
As part of our overall process, we analyzed the Property to come up with initial target valuations, as well as a strong hook to showcase it best to the market.
We profiled the ideal Buyers who would be willing to invest more to leverage the features of the Property, therefore maximizing the value to the Seller. We then positioned the Property to its highest and best use and took it to our network of relationships to leverage demand and offers. In doing so, the Seller remained in control of the process and maintained a strong negotiating position.
Once we received initial market feedback from interested Parties, we moved to negotiate a strong deal and closing.
Results
We successfully negotiated the sale of the property to a user with plans to redevelop into an equipment dispatch facility. Bottom Line: We were able to tap into our extensive network of relationships to sell the property in a multi-offer scenario with pricing above the Seller’s expectations.
If you are thinking of selling your industrial property, please give us a call and we would be happy to discuss your unique situation.
Luis Almeida is the Senior Vice President and Partner of Lee & Associates Toronto, specializing in the acquisition, disposition, and leasing of industrial properties, as well as providing clients such as local and national corporations, landlords, and developers with a full range of real estate services across verticals and industries.
ABOUT LEE & ASSOCIATES
Lee & Associates is a commercial real estate brokerage, management and appraisal services firm. Established in 1979, Lee & Associates has grown its service platform to include offices in the United States and Canada. Lee & Associates provides superior market intelligence in office, industrial, retail, investment, and appraisal to meet the specialized needs of our clients. For the latest news from Lee & Associates, visit leetoronto.wpengine.com.
To get clarity and direction when looking to sell your building, or to discuss any other real estate needs, please contact Luis at 416.628.8151, email at lalmeida@lee-associates.com, or visit www.leetoronto.wpengine.com.