Asset Disposition of Retail Property
The Challenge
When the client made the decision to retire and close their furniture store after a twenty year run in the same location, he had to consider the liquidation of the store inventory and what to do with the retail condo that had been purchased thirty years prior. In those intervening years the neighborhood has gone through several up and down cycles. Currently the commercial corridor where this property sits is part of state led, billion dollar road widening project making it very challenging to sell properties that could be impacted by eminent domain. The owner was considering leasing the property for additional retirement income but the uncertainty of the rental market in the post-pandemic world, the less desirable nature of a two level unit and the likely quality of tenant for that neighborhood led the client to listing the property for sale with TARTAN.
Tartan Action Plan
TARTAN immediately set out to determine the property’s value based on the condition of the unit, market competition, and the current interest rate environment. The approach emphasized the scarcity of opportunities to own retail space along Richmond Highway in Alexandria. A detailed offering memorandum was sent to the most active brokers and a digital marketing campaign was immediately rolled out targeting potential investors and occupiers in that submarket.
TARTAN was confident that the listing would receive significant attention despite some of the economic challenges of the neighborhood.
The Results
Because the client did not want the property to sit on the market TARTAN was able to negotiate the first offer received to 94% of the asking price and under contract within thirty-nine days. Additionally, TARTAN negotiated a delayed settlement so our client could enjoy a long planned vacation with his family. Additionally, he enjoyed to a one-month lease-back at no cost after settlement.
