From inside a problem it can be tough to see the way out. For that, you need the help of someone with a bigger perspective.
A new client came to us weary of being a landlord. He had inherited a 5,000-square-foot building on Joy Road in Livonia when the market was soft and leased it at below-market rent. His career-of-choice was demanding, and the added responsibilities of managing the property were burning him out. The current tenant’s lease was about to expire. To whom could he sell the building?
We marketed the property and generated several offers. As we showed the building to these prospective buyers, we sensed that the tenant was uneasy. A door manufacturer, he didn’t welcome the idea of moving his shop.
Though neither the owner nor the tenant had seen it, to us the solution was obvious.
We set up a meeting with the tenant to propose that he purchase the building. Initially he was sure he didn’t have the means. The owner also didn’t think the tenant could meet his sale terms. With our experience in commercial real estate transactions of all kinds, we got creative. We proposed ways to structure a deal that would work for both of them.
In the end, we closed the sale with a creative land contract. It freed the seller from the burden of building management while still providing him a steady monthly income stream. The tenant gained equity with his purchase while paying little more per month than he had been paying in rent. It was a classic win-win outcome.
With our experience, skill, and state-of-the-art technology, we can see solutions to commercial real estate situations that may be hard to picture when you’re inside them. Call us today to get on the road to win-win.
