Vacant Industrial/Office

The owner of this vacant, approximately 95,512 sf former medical building set on 10.04 acres originally had purchased it with the intent of converting it into a trampoline park

1019 E Chicago St, Elgin Il
Privately Owned Real Estate
Sale Price: $4,000,000

Business Challenge

The owner of this vacant, approximately 95,512 sf former medical building set on 10.04 acres originally had purchased it with the intent of converting it into a trampoline park. The building was part of a portfolio of commercial real estate the owner recently had purchased nationwide. When the owner decided against converting the building, he listed it for sale with a very large, nationally known commercial real estate brokerage firm. Initially the asking price was $4,000,000. Over time, the brokers substantially lowered the asking price, but still the property did not sell. At the time the seller engaged the AW team to auction the property, the most recent asking price with the prior listing brokers had been $2,900,000.

The sale of this property was particularly challenging due to its large size, its 100% vacancy and its location on the border of two counties that had very disproportionate real estate property taxes (the property was in the county that has a much higher property tax level than the literally yards away, adjacent county).

Solution

The AW team recommended a minimum bid/published reserve price of $2,500,000 and began aggressively promoting the property for an online auction that was scheduled to occur within 60 days.

Results

Prior to the online auction, the AW team solicited pre auction offers and ignited a bidding war. Ultimately, it became clear that one of the buyers (who was tax exempt) was much more motivated than the others and willing to pay a premium price in order to obtain the property. The AW team recommended the owner counter that buyer’s second pre-auction offer with $4,000,000 (the original asking price that the owner’s prior brokers had set when they first listed the property for sale). The owner approved this recommended counter offer and the AW team was able to successfully negotiate with the buyer who ultimately accepted it.

The AW team was able to achieve a pre-auction sale price that was $1,500,000 over the owner’s published reserve price. This sale price not only was equal to the initial asking price for which the owners prior brokers had originally and unsuccessfully listed the property for sale, but also $1,100,000 more than the most recent asking price of the prior listing brokers.

- CLIENT TESTIMONIAL
John Smith

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed eget risus porta, tincidunt turpis at, interdum tortor. Suspendisse potenti. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Fusce ante tellus, convallis non consectetur sed, pharetra nec ex. Aliquam et tortor nisi. Duis mollis diam nec elit volutpat suscipit.

John SmithCEO & Founder - Porto - Porto