HLC Delivers Results
Sale price savings: $2,900,000
Lease cost mitigation: + $1,800,000
Tenant buy-out income: + $300,000
Tenant saved: $5,000,000
The Challenge
Anchor Fabrication (“AF”), a nationally recognized contract fabricator occupying over 1M SF of industrial warehouse space, sought to own the 249,717 SF building it leased in Smithville, Tennessee, just outside of Nashville. Due to the nature of its operations and the substantial capital investment required for fabrication equipment, owning warehouse space would prove more advantageous than leasing. Property ownership would eliminate the risk of becoming a captive audience in future lease negotiations with landlords.
The Strategy
HLC deployed a time-sensitive acquisition strategy to capitalize on AF’s 60-day right of first refusal opportunity. The engagement required a comprehensive market analysis to determine optimal positioning, whether through the subject property purchase or alternative acquisition opportunities that could accommodate purchase strategies.
HLC executed a thorough comparable asset evaluation to establish accurate market valuations while activating its proven network of specialized local market experts. Through strategic partner selection, HLC assembled the optimal transaction team for this complex industrial acquisition.
The OUTCOME
The seller initially marketed the building at $17,000,000. HLC successfully negotiated a final transaction price of $14,100,000, resulting in nearly $5,000,000 of value for the tenant. The lease from an adjacent tenant was inherited in the transaction, providing AF with future expansion options. HLC negotiated a lease buyout arrangement worth $300,000 in income to AF, creating additional expansion capacity.
LOOKING FOR SMARTER REAL ESTATE SOLUTIONS?
Contact Holt Lunsford Commercial today | 972.241.8300
Adam Curran | 972.859.0813 | acurran@holtlunsford.com
Hudson Sheets | 469.301.5214 | hsheets@holtlunsford.com
