Cooperating SIOR Members:
Edward Redlich, SIOR, CCIM
(From Left to Right:)
Rick Etner, SIOR;
Chris Metzger, SIOR;
Sky Groden, SIOR,
Cushman &Wakefield of Florida
Ft. Lauderdale, FL
Transaction Type & Details:
Transaction Date: October 2012
Transaction Type: Sale
Building Type: Industrial
Building Size: 120,000 sq. ft.
Aggregate Rent or Sales Price: $10,400,000
ComReal’s client had been searching to purchase a large, class A or B warehouse over 100,000 sq. ft. in South Florida for about three years. Since
most of the properties this size and type are controlled by the institutions, the client had to rent 55,000 sq. ft. at the Atlantic Business Center owned
by Duke Realty.
Ed Redlich, SIOR, ComReal Miami, continually kept an eye open for the right property to become available both on and/or off the market. In
addition, Redlich stayed in constant communication with his SIOR contacts.
One day, Rick Etner, SIOR, Cushman & Wakefield of Florida, mentioned that the owner of a 120,000 sq. ft. space would entertain offers to
purchase, even though it was only on the market for lease. It was this communication between two SIOR designees that eventually led to the successful closing. The mutual respect between Redlich and Etner was very important during the negotiations and the due diligence processes as they
each had to represent their client’s best interests. Rick Etner, SIOR, is also on a team with Chris Metzger, SIOR, and Sky Groden, SIOR.
• ComReal’s client sought to purchase a class A or B warehouse over 100,000 sq. ft. with high ceilings in South Florida.
• Cushman Wakefield’s client could have renewed their existing tenant at a low rate, but they had property on the market to try to retain
a tenant at a higher rental rate. Eventually they were open to selling the property as another alternative.
• Although quite a few institutional investors expressed interest in purchasing the property, they did not pursue the warehouse because it is
a single user property that would soon be completely vacant.
• ComReal’s client made it work because they would use the entire building.
• The property only appraised for $10,000,000, although the sale price was $10,400,000.
• The buyer actually commenced its due diligence work before the contract was executed. This is very rare since buyers do not want to
invest money until they have control over the property.
• The constant communication between the SIORs over every detail was imperative in making this deal happen.
• SIORs on both sides needed to advise and educate their respective clients on market conditions, alternatives, negotiations, etc.