The transaction involved the sale of two high image multi-tenant developments known as the Hadley Business Campus and Englewood Centre. The portfolio was comprised of eight (8) buildings totaling 294,164 square feet on twenty-three (23) acres. CRESCO Real Estate represented both the Seller and the Buyer.

Approach/Challenges

• The Buyer required a 1031 Exchange with specific parameters.
• Buyer was from California, with a perceived negative perception of the Greater Cleveland marketplace.
• The existing mortgage was assumable; however terms and assumption fees were not attractive.
• The offering was comprised of multiple tenants (46) with short-term leases (2-5 years). The upcoming lease turnover was a major concern.
• Seller also required a 1031 Exchange in order to consummate a transaction on the offering.

Results

• The CRESCO team had discussions with the existing mortgage holder, as well as providing the Buyer with alternatives which resulted in financing well below market.
• Upcoming lease turnover was addressed by capitalizing on existing Tenant relationships and executing lease extensions prior to property transfer.
• Negative market perception concerns were overcome by expanding upon the positives which are often ignored by the media.
• The Seller achieved his objective of receiving a respectable value despite market conditions. In a relatively short timeframe, CRESCO was able to identify an out of state 1031 exchange for the Seller.
• The Buyer achieved his objective in completing his 1031 exchange and investing into a second tier market. Additionally, as a result of his experience with our team, we have retained and will continue to manage and lease both developments.