In a market of rising interest rates and the uncertainty that it brings, the Thomas Duke Company’s Jordan Schafer and Dave Tesch successfully brokered the sale of 2335-2337 Alger Drive in Troy, Michigan, at $89 per square foot and a 7.0 percent cap rate. Making this a strong comparable for today’s market.
The seller of the mid-size industrial building of 16,500SF held a strong card: a single tenant on a NNN lease had occupied the building since 1987. In fact, the seller had become an employee of that business as a teenager and over the years rose to own the business and building. As part of his retirement planning, he first sold the business. When he was ready to sell the building too, he called us.
The seller was looking for a deal that would continue to benefit him over the next decade. Advertising the property’s strengths, we tapped our proprietary database. Our marketing campaign quickly generated 10 showings within the first few weeks and multiple offers soon after.
The land contract we negotiated gives our client, the seller, a steady source of retirement income over the next few years. On the flip side of the deal, the land contract allowed the buyer to secure a lower down payment and a lower interest rate than traditional financing could offer. Also, to the benefit of both parties, the deal moved fast. The closing took place 30 days after we executed the purchase agreement and only 90 days after we listed the property.
In this uncertain market, let us help you negotiate a deal that will strengthen your assets. Whether you’re looking to buy or sell a property, give us a call at 248-476-3700 or email at jschafer@thomasduke.com or dtesch@thomasduke.com.
