Case Studies
Winery & Vineyards Vineyard and Commercial Winery 35288 Highway 79 / Warner Springs , CA 92086
After years of cultivating the soil, planting premium varietals, and installing drip irrigation systems with computerized timing, the client decided to spare no expense and build a state of the art winery on the vineyard property. After several successful years of creating gold medal wines, their winemaker moved on to other endeavors. To manage costs, the family decided to focus solely on selling grapes. The transition reduced expenses allowing them to operate profitably. Two years later, Agent Commercial was tasked with selling the winery at a price point that would allow the husband and wife owners to retire.
Our Solution
Agent Commercial discussed several sales strategies with the client to maximize value for the winery. Values for wineries and vineyards vary depending on the profitability and type of operation. Agent Commercial created a proforma income statement for a new buyer based on grape sales, bulk wine, and bottled wine. Agent Commercial reset the asset value of the winery equipment and revalued it based on the number of hours used VS age. We created a confidential memorandum that included the proforma income, the asset values, other wineries for sale, as well as recently sold wineries in the area. Part of the Agent Commercial marketing plan included outreach to potential buyers by listing the property on both the residential and commercial MLS, as well as on various trade sites. Agent Commercial also featured the property in its award-winning magazine, Elevated.
Outcome
Agent Commercial generated multiple offers and reviewed the various financing options included on the offers with the owners. Agent Commercial helped close the transaction after carefully selecting the buyer best suited to our clients’ financial expectations.
Multifamily A Limited Liability Company 16300 Bake Parkway / Irvine , CA 92618
Agent Commercial learned that the LLC ownership had been trying to sell 16300 Bake Parkway unsuccessfully for six years using multiple commercial real estate firms. COVID had further impacted the office market, creating a higher office vacancy rate. Agent Commercial was introduced to the partners of the LLC as a unique commercial real estate firm that had the resources and marketing capabilities to sell their property. Ownership was conflicted on listing the property for sale due to the pandemic. Meeting with the partners in person was also problematic due to COVID related confinement.
Our Solution
The Agent Commercial sales team requested the financials of the partnership. After analyzing their structure and finances, we presented ownership with a virtual listing presentation. We formed a plan in which we took the projected sale price, then deducted the cost of sale, and paid off the mortgage balance and all the liabilities of the LLC. We created a video explaining the net yield for a successful sale of the property. A detailed marketing presentation was included with the financial analysis. Our plan included outreach with Agent Commercial’s investors, as well as local commercial real estate teams. Our core marketing strategy consisted of targeting professional firms leasing larger facilities in the immediate area that would benefit from downsizing to an owner/operator building.
Outcome
Agent Commercial’s marketing outreach resulted in immediate offers and a record sale. Ownership/partners were pleased to sell their property after six years of unsuccessful efforts by other firms. Ownership then offered Agent Commercial a second property to sell. Agent Commercial listed and closed both properties in 90 days.
Retail An industrial income property 7696 Vickers St. / San Diego , CA 92111
Taxes were due for the estate and the assets were needed to equally distribute the proceeds.
Our Solution
Agent Commercial first aligned itself with the family’s vision and decision making process. We then consulted with the successor trustee and gained permission to meet with the five family members. After discussing the value of maintaining the asset and distributing the monthly income VS selling the asset and distributing the proceeds of the property, the family to decided to sell the property, pay the estate taxes, and distribute the profits.
Outcome
An estoppel agreement was issued to the tenant along with a rent VS own analysis. Ultimately the tenant provided the highest offer to purchase the property. The property was listed and sold in 60 days.
Office Retired Wall Street Executive 853 Camino Del Mar / Del Mar , CA 92014
The client intended to sell his 12,000 square foot ocean view office building and set up a charitable remainder trust with a goal of transferring the proceeds into the trust. COVID complicated the sales goal as one of the largest occupants vacated their lease, devaluating the income potential of the property.
Our Solution
Agent Commercial reviewed the remaining leases of the property and evaluated the seller’s desired cap rate as well as their desired sales price target. Agent Commercial managed the property, recommended seller improvements, deferred maintenance repairs, and elevated the property to optimal sale value by finding new tenants and stabilizing the existing tenants. We also strategically kept an optimal space in the building vacant for a new potential owner/user. Upon listing, we positioned the property as a lease opportunity, an investment opportunity, and an owner/user opportunity. Agent Commercial then contacted potential buyers through our private list of building owners and corporate executives. Among the list were several companies that had reviewed the property for their corporate headquarters. Agent Commercial introduced buy VS lease options for the larger potential tenants. We created a proforma income statement and a detailed confidential memorandum illustrating the purchase value and IRR.
Outcome
Agent Commercial sold the property while achieving a premium value for both the landlord and the successful new owner/user. Part of the sale included negotiating a first trust deed with the charitable remainder trust as the beneficiary of the trust deed. The building was used as collateral for the note, and the charitable remainder trust attained the desired rate of return. The second floor of the building is now the world headquarters for the new owner, a prestigious hospitality company.
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