“Project D-Star” – Sale of 2 Class “A” Office Buildings for $33 Million
The owner of Project D-Star sought a fairly quick disposition of the asset in order to re-deploy capital elsewhere. The owner’s local presence was limited to Project D-Star’s location and had some concerns about reaching out to prospective purchasers in the local market.
The owner briefly considered engaging a broker for an exclusive listing with national exposure, however, there were concerns about the length of the process for listing the property. In addition, the owner was in current renewal discussions with a couple tenants and the publicity of a listing would have adversely impacted the owner’s position.
Project D-Star was originally viewed as a strong Class “A” property, but over the years certain aspects of the property looked dated. The property was also a suitable candidate for some minor cosmetic upgrades as well, which would restore the property to a solid “A” grade status.
SRG was contacted by the owner about the opportunity. In turn, SRG presented the opportunity to a client that previously expressed interest in acquiring properties in that submarket. SRG facilitated face-to-face meetings between the principals. While both parties negotiated the deal very thoroughly—creating at times some tension—SRG diligently monitored the issues and facilitated the negotiations.
Ultimately, the deal was consummated. The seller achieved the goal of extracting appreciated value from the property and the buyer was able to quietly acquire a quality asset in a fairly competitive market.