Highlights
- Matched a credit tenant’s unique facility requirements with a family office’s 1031 Exchange needs
- Structured a sale-leaseback-style transaction to align seller, buyer, and tenant interests
- Delivered a custom-tailored facility, secured investment, and favorable exit—simultaneously
Challenge
Our office was engaged by a credit tenant searching for 10,000 SF of office/warehouse space with highly specific requirements: a heavy office build-out, an above-market parking ratio, and an outside lay-down area. These unique needs drastically limited the pool of potential properties. At the same time, one of our family office clients needed to acquire an income-producing property as part of a 1031 Exchange, facing strict deadlines to reinvest. The challenge was whether we could deliver a solution that satisfied the tenant’s operational requirements, the investor’s exchange needs, and the property owner’s desire to sell—all in one transaction.
What we did
We canvassed the market, touring and reviewing multiple facilities with the tenant until we identified a property that checked every box. The obstacle: the owner was only interested in selling, not leasing. Rather than walk away, our team connected the dots. We recognized the opportunity to align all parties by structuring a sale-leaseback-style transaction. The family office acquired the building, securing a long-term, creditworthy tenant, while the tenant executed a custom lease that included negotiated tenant improvements for the heavy office build-out. We coordinated closing timelines to satisfy the seller’s liquidity needs and the buyer’s 1031 requirements, while ensuring the property layout met the tenant’s parking and lay-down demands.
Result
The transaction produced a true win-win-win. The seller achieved a clean exit at favorable terms. The buyer secured a newly constructed, income-producing property leased long-term to a credit tenant, fulfilling their 1031 Exchange. And the tenant gained a custom-fit facility that supported both current operations and future growth. This deal highlights our ability to think creatively, align diverse stakeholder goals, and execute complex negotiations that deliver lasting value for all parties involved.
Key Takeaways
- Creative deal structuring can unlock opportunities where standard solutions fall short
- Aligning diverse stakeholder goals requires strategic vision and precise execution
- Comprehensive market knowledge and negotiation skills are critical to complex transactions
