CRESCO Real Estate represented both the Buyer and the Seller in this transaction. Sematic was looking to downsize from their current facility in Valley View and relocate to Twinsburg. Prior to a move, a deal needed to be concluded for the disposition of their Valley View facility. The building sold for $4,090,000. This property was submitted to NAIOP and prevailed as the winner for Industrial Transaction of the Year 2008.

Approach

• Hired to assist in the disposition on the Valley View property, and in conjunction, had the responsibility to assist Sematic in acquiring a smaller facility in Summit County (Twinsburg).
• The Seller, Sematic USA (Tyler Elevator) wanted a premium price for the property: $4,575,000 ($49.53 psf).
• As CRESCO scoured the market for prospects, part of the team (who was providing relocation consulting for Graybar Electric) realized that the Valley View facility could be a perfect fit.
• During negotiations and due diligence, several issues arose including an old water tank that had to be removed along with a minor mold issue.

Results

• A building that was not on the market was identified for Sematic’s criteria. The location in Twinsburg transferred in December 2007 for $1,762,150, one of the highest comps in the area. Sematic leased the building back to the Seller until they found a Buyer for 6161 Halle (Valley View).
• Informed Sematic that in order to achieve the highest value, the building needed some cosmetic improvements including: parking lot improvements, landscaping and painting the exterior of the 52′ high 91,809 square foot facility. CRESCO added service value by producing competitive quotes and state-of-the-art imaging for exterior color selection.
• After several months of conducting searches and tours, Graybar submitted an offer for 6161 Halle Drive.
• Many hours of work and last minute negotiations resulted in a solution which allowed both companies to enjoy new facilities.