Market Analysis and Modeling
|PROPERTY SIZE||8,000 SF Office|
|FINANCIAL BREAKDOWN||Final purchase price was 25% below what the seller had paid for the property|
McKinney Advisory Group was introduced to HOLDRITE’s president, Tim McConnell, in January of 2014. McKinney has assisted HOLDRITE with real estate transactions in California and Tennessee. Damian McKinney, Corporate Real Estate Advisors Peter Quinn and Andrew Meyers consulted with the client in order to determine the client’s requirements. McKinney was able to identify a property for HOLDRITE that was larger, newer, and much more functional for HOLDRITE’s needs. The property was also priced lower than the client’s previous space. McKinney’s services included arranging the lease agreement between the buyer and the company, at no additional cost.
With more than two years still remaining on their existing lease, McKinney was asked to assist HOLDRITE in evaluating their options to relocate as the company had outgrown its current space. It was important that McKinney identify potential properties that would allow the client to have adequate air-conditioning and improved access, which its current location lacked.
McKinney was able to identify 14 potential properties for lease that met the client’s criteria. In order to determine which would be the best option, McKinney analyzed the net occupancy costs for a lease scenario versus a purchase. Due to record low interest rates, the occupancy costs proved lower for a purchase. McKinney put HOLDRITE in touch with City National Bank.
McKinney utilized our market knowledge to source a dozen purchase opportunities for the buyer to consider. McKinney negotiated a lower price on the buyer’s first choice. Upon opening escrow, McKinney worked closely with the buyer during the due diligence period, including Argus modeling of all financing alternatives, coordination of physical inspection of the property, and negotiating further price concessions related to deferred maintenance. The final purchase price was 25% below what the seller had paid for the property.