Tri-Oak Consulting Group
TOPIC: Sold with 4.06 Years of Lease Term
PROPERTY: Family Dollar – Woodville, MS
A developer whom our firm represented not only develops and invests in new retail single-
tenant properties, but also older retail properties seeking to diversify their portfolio and create value-add opportunities. Our clients wanted to sell their Family Dollar property in Woodville, MS because the lease term remaining was less than 4.5 years and the property was outside of their geographical preference. We worked in conjunction with the sellers to understand and confirm their long and short term goals. We were then able to strategize, target, and position the property to attract the most probable buyer.
The sellers bought the Family Dollar property with a short lease term remaining in a rural location. Family Dollar did not renew the lease early as the sellers were intending, and they had no intentions of holding the asset long term. After placing the property on the market with another firm for six months, the probable buyers were not being reached and they received limited to no offers. The lease term was steadily decreasing and the property was located outside of their geographical preference, so they decided to reevaluate their marketing efforts.
Once the buyer had informed us of their potential 1031 exchange and the need to locate newer assets with longer lease terms and his additional search criteria, we were able to create the "Purchase Profiler" and conduct a thorough property search on his behalf. We continued "locating" qualified properties that fit within his criteria for 3 to 6 months.
Once the sellers informed us of their investment situation, we devised a strategy that would allow us to effectively locate a probable buyer. Prior to us marketing the property, the cap rate was aggressive for the current lease term remaining, on a double-net property based on the existing market conditions. We created “The Property Profiler” and conducted a thorough broadcast using our newly created sales position, whom leveraged our current database of potential buyers and prospects in addition to unconventional web-based resources. With pricing to market and our aggressive marketing efforts, we were able to locate an “all cash, quick close” buyer that was in a 1031 exchange, in only 38 days.