CHALLENGE
A regional manufacturer is quickly outgrowing its industrial manufacturing space and approaches Linville Team Partners to find a new location to expand its operations and upgrade to a campus-like facility. The client closes on their ideal space, a facility that will take five years to renovate. In the meantime, they will continue operations at their existing facility, tying up cash and impeding the business’s growth plans.
ACTION
LTP’s Brokers see a sale-leaseback opportunity, a move that would allow the client to free up capital for improvements to their new site without losing the ability to use their current location. The Brokers run sensitivity analysis and immediately recognize that the short five-year lease term and facility confinements significantly reduce the pool of potential investors. Through advanced resources, connections, and industry knowledge gained through years of experience, the Brokers identify sufficient demand for like-buildings in the area, none of which are available.
RESULT
Through creative analysis of their in-demand industrial facility, which resulted in a mutually beneficial sale-leaseback agreement, LTP’s client maintained operations at their existing facility while developing their new property. Critical factors to LTP’s success included:
- Identifying and proactively addressing objections from potential buyers.
- Skillfully presenting the property’s investment potential.
- Generation of multiple leads through persistent prospecting.
- Skilled negotiation tactics.