Byrning Hill Plaza

114 S. Byrne Road, Toledo, Ohio

Challenge:

Our team was hired thru the Receiver to sell this property on behalf of a Receiver appointed at the request of Huntington Bank. We listed the property at $1.4M and put together a thorough offering memorandum for those who would respond to our initial offering and sign a Confidentiality Agreement (CA) expressing genuine interest in pursuing this asset.  Our announcement was sent to 12,237 prospects who identified interest in this product type and geographic location.  We had 24 individuals and/or companies sign our CA and receive complete packages.  We also had a complete inspection of the property with a full and honest report of the condition available on CD to assist any buyer questioning the overall condition, which was rough to say the least.  This proved to be a helpful tool by putting it all on the table sooner, rather than later. There was substantial push back on the price due to length of leases and overall quality of tenants and the building.  We attempted to get Rite Aid to extend their approximate one year remaining in an effort to make this more attractive as an investment, but they balked and then asked for unreasonable concessions to extend for three years.  We refused and continued with our marketing.

Solution:

When it was apparent the market would not come close to the asking price, the Receiver agreed to reduce the price to $1.1M and we did another marketing push as “reduced price” to our database.  We were able to develop new interest, but still came up short on price.  Along the way, Rite Aid had a change of mind and extended their lease with no concessions, which helped establish an anchor, if you will, and we took this to what we felt were the best prospects we had identified through our marketing to date.  We had a group out of New York make a cash offer of $700,000. At first this was not appealing to the lender, but we were able to convince them thru documented contacts and comments from local buyers as well as many from around the country, that this was probably as good as they could expect.  They finally agreed and we were able to close.

Results:

Our fairness and honesty with the buyer established a good working relationship and RKG will be managing this property for them going forward.

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