CRESCO Real Estate was hired as the listing agent to dispose of a 10,300 square foot owner occupied facility in Bedford Heights, along with locating a 23,000 square foot replacement property to accommodate a 1031 Tax Free Exchange.

Approach

• Properly price and market the company’s current 10,300 square foot headquarters and locate a larger facility to accommodate their growth and new equipment.
• Established a time frame that allowed the least amount of disruption to the business practice, but allowed for the timely delivery of a new state-of-the-art facility.
• Coordinated the transaction to remain inside the federal tax free exchange guidelines and eliminate any capital gain issues.
• Allowed for a holdover lease period between the disposition of the existing building as well as the acquisition and construction of a new building.

Results

• After an extensive marketing campaign and a few starts and stops, a Buyer was located who met the economic terms and conditions of the Seller.
• Accomplished a standard 1031 Tax Free Exchange, without the need for a Reverse 1031 and the risks associated with that type of transaction.
• Acquired the new asset in Warrensville Heights at a reduced price due to market conditions and assisted the Buyer in locating a contractor to meet  the move-in time frames.
• Negotiated a 75 day holdover in the Bedford Heights building to allow for the necessary improvements to be completed prior to occupancy.