Creating Solutions

A New Jersey-based manufacturing company needed to re-locate to a larger facility in a more desirable location, with company management wanting "ownership" of the new property. By "networking" the requirement, a facility that had most of the qualities that worked for the customer was identified; most important being location, property size, and structural "improvements" on the site. The property however had an environmental challenge, involving sub-surface oil contamination (dating almost 100 years on the site) that would not be readily or economically remediated. A long-term (99 year) lease deal was negotiated, with rent payments equal to the appropriate "market sales" price (on the basis of the property being environmentally "clean"). The majority of the lease payments were made during the initial 2 years of the lease, with rent for the remaining years of the lease at $1.00/year. The customer was able to re-locate to a more desirable facility, in a better location, having paid in advance for "perpetual" use of the property (as if it were "owned") without the seller having to address the costly and time-consuming environmental issue before completing the transaction.

A major warehouse and distribution company was in need of relocating due to the impending sale of their 100,000+ Sq. Ft. warehouse and their need for space to accommodate growth. By "networking" the requirement, a facility was identified that was well-located and in most ways satisfactory for the company's needs, although it was approximately 100,000 Sq. Ft. larger than the immediate requirement called for, and needed improvements including new offices, new lighting, upgrading of existing loading doors, and other amenities. By utilizing other assets of the customer as part of the "security", and skillfully negotiating a long-term lease with the Landlord, incorporating a guarantee of performance, the customer was able to move to a better location, with plenty of room for growth, into a newly renovated facility, while absorbing a large unit of vacant space for a major regional Landlord.

A large cosmetic manufacturing facility in excess of 130,000 Sq. Ft. had been listed "for sale" for more than 5 years, having been represented unsuccessfully by several "national" brokerage firms. The building on the property was part of a site involving a 99-year land lease that included terms which prevented prospective purchasers from securing conventional financing. Hence, the property remained unsold. Through "networking" locally with other cosmetics industry manufacturers, contact was made with a Latin-America-based prospect within the industry, for whom the purchase of a "land leased" property presented no challenge (land leases are very common in Latin America and elsewhere in the world). The prospect quickly signed a purchase contract and the deal closed within 90 days.

A large corporate owned research and development facility in a neighboring state had been on the market for several years, having been unsuccessfully represented by several "national" (and "international") brokerage firms, whose marketing approach included attempting to attract prospective purchasers from distant cities and of foreign origin. In meeting with the ownership, it was suggested that the best prospect for this property was probably located very close to the property and therefore, having "national" (or "international") representation was not necessarily the best means to locating a suitable purchaser. Following a marketing plan that included co-representation of the property with another regional broker in the neighboring state, within approximately 90 days, a qualified purchaser was located (less than 10 miles from the property), a contract was negotiated and the deal closed quickly thereafter.