The Challenge
By the third generation, a storied King Street property had reached a turning point, and it was time to sell the building. Formerly home to the “Temple Shoes” storefront, and the upstairs flat where the original owners raised their children, the asset had one residential unit ending its lease, a second sitting vacant requiring full renovation, and deferred maintenance accumulating across the building. The primary challenge was navigating the deep emotional attachment and fragmented priorities of multiple stakeholders while positioning the mixed-use property to attract a value-add buyer capable of capturing residential upside and maintaining stable retail income. This situation is emblematic of many multigenerational property owners faced with deciding when to exit ownership, particularly when family dynamics and legacy considerations intersect with market realities. from industrial space to a government contractor’s R&D facility, a significant remodel would be required for most any user. With its functional obsolescence and the scale of the property (67,000 SF), the potential demand for the space was uncertain.
Tartan Action Plan
TARTAN immediately set out to establish an accurate property valuation to build confidence and consensus amongst the third generation owners and reflect the current leasing status. (strong in-place retail lease, an expiring residential lease, and a vacant unit requiring full renovation.) We then defined the buyer profile for a mixed-use, value-add asset and tailored outreach to specific brokers, qualified investors and a targeted list of Alexandria stakeholders. The goal was to maximize the qualified attention on the asset. TARTAN received four competing offers and countered each to optimize terms. TARTAN’s deep understanding of the complexities of the current market cycle and the demand for similar properties provided confidence in pricing and positioning, and enabled a systematic, competitive sale process.
The Results
The building was promptly sold at asking price to an Alexandria-based family office. Although one bidder offered above the asking price, the sellers selected the more experienced buyer to maximize certainty of close. TARTAN managed seller-side diligence end-to-end, producing a streamlined, low-stress transaction. While the residential units are being renovated and retenanted, the primary retail tenant remains in place, preserving value and stability. The sellers were able to realize the gains of the previous generations and individually deploy the proceeds to achieve their personal goals.
