We were approached by the vendor regarding the listing and sale of their property, a 19,859 square foot freestanding building on a 1-acre site in Bridgeview. Originally, a 3-year leaseback clause was requested by the vendor to allow sufficient time to move their business. After providing a comprehensive property assessment, and with our knowledge that in today’s industrial market a vacant building sells for a higher price than a leased one, we knew it was time to get creative.
Our Creative Solution
1. We helped the vendor secure financing on two new properties before the completion of the 116 Avenue property sale.
- Using increased equity in the 116 Avenue property, mezzanine financing was secured through a finance broker, one of many in our extensive network of professionals.
2. We secured a new location for the vendor’s business using our internal inventory tracking system.
- The purchase of the new property eliminated the vendor’s need for a 3-year leaseback, enabling us to market the property as vacant.
3. We ran a pro-active sales and marketing program resulting in multiple competitive offers.
- 12891 116 Avenue was sold as a vacant sale, garnering an estimated 20% higher sale price than if sold as a tenanted property.
Frontline Real Estate Services’ creative approach allowed the vendor to take advantage of our in-depth local industry knowledge and network of professionals to secure mezzanine financing, buy before selling, and subsequently sell the property as vacant. Record-breaking results were achieved for the vendor, showcasing our ability to solve complex real estate problems and service the diverse needs of industrial business owners.
If you are interested in learning more about this transaction or how we can help you achieve your real estate goals, please reach out to either of us directly. Alternatively, if you would like to speak to the client directly about his experience, he’s happy for us to put you in touch!
*Based on the normalized price per square foot sale price for freestanding buildings in Bridgeview, Surrey as of April 1, 2022. Source: Commercial Edge.