CASE STUDY: BUYER’S REPRESENTATION - Terry Coyne · CASE STUDY: BUYER’S REPRESENTATION...
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CASE STUDY: BUYER’S REPRESENTATION 2,000,000 SF (Former Chrysler Stamping Plant) $9M Sale Price Scannell Properties 167 Acres “Terry’s in-depth knowledge of the market, the players, the municipalities, and the behind-the-scenes activities made the purchase of the property feasible to us, an out-of-town buyer/developer.” - Tim Elam, Owner, Scannell Properties OUR JOB Represent the buyer to acquire the real estate and land for scrap metal, recycled concrete, natural gas, mineral rights, and more. CHALLENGE It’s complicated. Due to the bankruptcy of the former Chrysler stamping plant, we had to navigate a somewhat convoluted purchase that involved a liquidation company and both the real estate and the natural gas and mineral rights. We had to develop a budget that included acquisition, demolition, extensive environmental remediation, utility rework, and more. The neighborhood was reeling from the loss of quality jobs. City income suffered due to the closing of the plant. Naysayers doubted that the developers innovative plan would work. So, we had our work cut out for us to navigate the sale and reassure the community. SOLUTION Engage the stakeholders. Stay optimistic. Go step-by-step. Terry supported and augmented the vision of the buyers as they created Cornerstone Business Park, an industrial and office business park. With a space spreading over 167 acres, no one “magic bullet” solution would resolve the concerns of all parties. We met with city officials anxious to replace the lost income and arranged for a real estate tax abatement on a case-by-case basis for new tenants. We made best use of the location’s rail on site and strategic placement next to highways to attract tenants. RESULT Success. Cornerstone Business Park welcomed its first company in 2012. Vistar, a convenience store distributor, engaged Scannell Properties to build them a 137,000 SF warehouse. A minimum of two more buildings will be added to the park in 2015, including a 200,000 SF multi-tenant, speculative building and a 303,000 SF packaging and distribution center. “Personal relationships mean a lot when navigating a momentous undertaking like this one. We not only had to deal with the liquidation company that owned the property and equipment, but also with city government officials and potential tenants to make sure our client was set up with the best chance for success for their bold vision with 167 acres of potential.” – Terry Coyne Terry Coyne (SIOR, CCIM) is a full-service commercial real estate broker in Cleveland. As part of Newmark Knight Frank, Terry has provided real estate solutions for Northeast Ohio since 1995. He’s consistently a top broker nationwide. Contact Terry at: [email protected]
Transcript of CASE STUDY: BUYER’S REPRESENTATION - Terry Coyne · CASE STUDY: BUYER’S REPRESENTATION...
CASE STUDY: BUYER’S REPRESENTATION
2,000,000 SF(Former Chrysler Stamping Plant)
$9M Sale Price
ScannellProperties
167 Acres
“Terry’sin-depthknowledgeofthemarket,theplayers,themunicipalities,andthebehind-the-scenesactivitiesmadethepurchaseoftheproperty
feasibletous,anout-of-townbuyer/developer.”- TimElam,Owner,
Scannell Properties
OUR JOBRepresentthebuyertoacquiretherealestateandlandforscrapmetal,recycledconcrete,naturalgas,mineralrights,andmore.
CHALLENGEIt’scomplicated. DuetothebankruptcyoftheformerChryslerstampingplant,wehadtonavigateasomewhatconvolutedpurchasethatinvolvedaliquidationcompanyandboththerealestateandthenaturalgasandmineralrights.Wehadtodevelopabudgetthatincludedacquisition,demolition,extensiveenvironmentalremediation,utilityrework,andmore.Theneighborhoodwasreelingfromthelossofqualityjobs.Cityincomesufferedduetotheclosingoftheplant.Naysayersdoubtedthatthedevelopersinnovativeplanwouldwork.So,wehadourworkcutoutforustonavigatethesaleandreassurethecommunity.
SOLUTIONEngagethestakeholders.Stayoptimistic.Gostep-by-step.TerrysupportedandaugmentedthevisionofthebuyersastheycreatedCornerstoneBusinessPark,anindustrialandofficebusinesspark.Withaspacespreadingover167acres,noone“magicbullet”solutionwouldresolvetheconcernsofallparties.Wemetwithcityofficialsanxioustoreplacethelostincomeandarrangedforarealestatetaxabatementonacase-by-casebasisfornewtenants.Wemadebestuseofthelocation’srailonsiteandstrategicplacementnexttohighwaystoattracttenants.
RESULTSuccess.CornerstoneBusinessParkwelcomeditsfirstcompanyin2012.Vistar,aconveniencestoredistributor,engagedScannell Propertiestobuildthema137,000SFwarehouse.Aminimumoftwomorebuildingswillbeaddedtotheparkin2015,includinga200,000SFmulti-tenant,speculativebuildinganda303,000SFpackaginganddistributioncenter.
“Personalrelationshipsmeanalotwhennavigatingamomentousundertakinglikethisone.Wenotonlyhadtodealwiththeliquidationcompanythatownedthepropertyandequipment,butalsowithcitygovernmentofficialsandpotentialtenantstomakesureourclientwassetupwith thebestchanceforsuccessfortheirboldvisionwith167acresofpotential.”– TerryCoyne
TerryCoyne(SIOR,CCIM)isafull-servicecommercialrealestatebrokerinCleveland.AspartofNewmarkKnightFrank,TerryhasprovidedrealestatesolutionsforNortheastOhiosince1995.He’sconsistentlyatopbrokernationwide.ContactTerryat:[email protected]
