Challenge
A Fortune 500 company wanted to sell their 64,000 sq. ft. facility located in London. Allegro had a successful existing relationship with the client domestically and was engaged by the international group to evaluate two offers they had already received on the property and provide expertise on how to handle the transaction.
Solution
Allegro educated the international leaders on the benefits of retaining an experienced local broker with Allegro leading the negotiations. Allegro’s process and strategy was intended to maximize the sales price, secure local market knowledge, and guide the transaction strategy and negotiations based on local real estate standards and nuances. Allegro interviewed several brokers in the London area and requested their marketing proposals and Opinions of Value. After reconciling the different valuations and targeting a sales price, Allegro engaged the strongest local broker with prior experience on similar transactions in the relevant submarket.
Allegro and the local broker evaluated the two offers the client had already received. After further vetting, it was determined that one was too low and the other was not truly a qualified buyer.
Allegro explored the possibility of selling the property for residential redevelopment since the area around the industrial facility was being redeveloped. Though residential property sold for much higher prices, it was concluded that the 18-24 months it would take to re-zone the property for residential use and the risk of shifting market conditions was not acceptable to the client.
Allegro and the local broker leveraged offers from several new buyers to select an industrial investor who was comfortable maximizing his price. The investor continued leasing the property for industrial use and was willing to take a gamble on the upside from future residential conversion. Allegro was able to sell the property for higher than the initial value estimates and close in 6 months vs. what could have been an 18-24 months process.
The final sale price added almost $2 million (30%) upside for the client compared to the unsolicited offer they were initially eager to accept when Allegro was engaged to lead the negotiations.
