Case Study Mount Holly

Project Brief

OPAS entered into a joint brokerage agreement with a local RE firm, which had initially represented the owner in the sale of their former headquarters and in their acquisition of the site for their new headquarters. The owner of the property was formerly the owner of FMC, which he sold while retaining ownership of the property.

Challenge

Above market short term gross lease

• FMC’s parent company owned several firms in this Niche Industry making it difficult to determine the tenants stand-alone credit. The parent company was not a guarantor on the lease.

• Secondary logistics location.

• Owners desire to be selective in marketing the property due to FMC employee sensitivity 

• Desire to complete a sale in a timely fashion.

Approach

OPAS advised a restructure of the lease from Gross to NNN and a reduction in the rent in exchange for 10+ years. By understanding what buyers want and what they will pay, OPAS advised the client to position the property for maximum proceeds by changing the nature of the property from a short-term leased building to a “stabilized asset” attractive to a broader and more aggressive to the NNN Buyer pool.

Outcome

By implementing our approach we were able to secure a National REIT to acquire the property at a price in excess of the owner’s expectations and close within 2 months of the initial offer. OPAS exceeded the Clients’ expectations in pricing.