We Helped Sell a 306,941-Square-Foot Underleased Warehouse in Kansas for $5.5 Million.

Selling a large commercial property can be challenging—especially when the property has significant vacancy, limited cash flow, or has not performed as expected.

Recently, Commercial Partners of Texas' CRE Sales Department helped an owner sell a 306,941-square-foot warehouse property in Kansas that was only approximately 10% occupied.

The owner had been unable to fully lease the property and faced the challenge of finding a buyer willing to take on the vacancy and repositioning opportunity.

We identified a commercial real estate private equity investment company that recognized the property's potential and acquired the warehouse for approximately $5.5 million.

The investment company plans to stabilize the property, increase occupancy, improve its income-producing potential, and potentially sell the property at a substantially higher value after stabilization.

An Underleased Property Can Still Have Significant Value

A property does not necessarily have to be fully leased or operating at peak performance to attract qualified commercial real estate investors.

In many cases, institutional investors, private equity firms, real estate investment companies, developers, and experienced owner-operators specifically look for properties with:

• High vacancy

• Below-market rents

• Expiring leases

• Weak occupancy

• Underperforming NOI

• Deferred maintenance

• Management problems

• Properties requiring repositioning

• Distressed or motivated ownership

• Industrial and warehouse properties with redevelopment potential

• Commercial properties with significant value-add opportunities

For the right investor, an underperforming property can represent an opportunity rather than a problem.

Our Job Is to Find the Right Buyer

At Commercial Partners of Texas, we understand that every commercial property and ownership situation is different.

Our CRE sales team works with property owners to identify potential buyers based on the property's characteristics, location, financial performance, physical condition, and investment potential.

For properties with significant vacancy or operational challenges, the most obvious buyer may not always be the right buyer.

A property that is difficult to sell to a traditional owner-user or stabilized-property investor may attract interest from a private equity real estate fund, value-add investor, developer, opportunistic investor, or other investment group.

Our role is to help identify those potential buyers and present the opportunity in a way that clearly communicates the property's current condition as well as its potential.

Do You Own an Underleased or Underperforming Commercial Property?

If you own a commercial property that is struggling to reach its potential, you do not necessarily have to wait years for the property to stabilize before exploring a sale.

Commercial Partners of Texas can help you explore potential buyers for underleased and underperforming commercial real estate.

We work with owners of:

• Warehouses

• Industrial buildings

• Distribution centers

• Retail centers

• Office buildings

• Multifamily properties

• Hotels

• Self-storage facilities

• Land

• Mixed-use properties

• Investment properties

• Distressed commercial real estate

• Value-add commercial properties

Our CRE sales services are available nationwide.

We Also Understand the Financing Side of Commercial Real Estate

Commercial Partners of Texas is not only involved in commercial real estate sales. We also have extensive experience in commercial real estate financing, including acquisition financing, refinancing, bridge loans, construction financing, private money, CMBS, SBA financing, and other commercial financing solutions.

That financing knowledge can provide an additional perspective when evaluating a commercial property and potential transaction structure.

In some situations, the right buyer may need financing to acquire and reposition the property. Understanding both the sale and financing sides of a transaction can help facilitate more efficient discussions between owners, buyers, investors, and lenders.

Your Property's Current Performance Does Not Tell the Entire Story

An underleased property can be difficult for an owner to manage, but it may be exactly the type of opportunity an experienced investor is looking for.

The Kansas warehouse transaction is one example: a 306,941-square-foot property with approximately 10% occupancy was ultimately acquired for $5.5 million by an investment company that saw an opportunity to stabilize and reposition the asset.

The buyer's investment strategy is different from the previous owner's situation. Rather than simply looking at the current occupancy, the buyer evaluated the property's potential and the opportunity to create additional value through stabilization.

Do You Have a Similar Property?

If you own a commercial property that is:

Underleased • Underperforming • Vacant • Distressed • Difficult to Sell • In Need of a New Strategy

we would like to hear from you.

You may have a property that another investor is specifically looking for.

Commercial Partners of Texas can help you identify potential CRE buyers and explore your options for selling your commercial property.

Contact Commercial Partners of Texas

If you are considering selling an underperforming or underleased commercial property, contact our CRE Sales Department to discuss your property and potential buyer opportunities.

Commercial Partners of TexasHouston, Texas | Serving Commercial Real Estate Owners Nationwide

Phone: (832) 607-1113Email: george@amerimort.comWebsite: www.amerimort.com

Have an underleased warehouse, industrial building, retail center, office building, hotel, land, or other commercial property? Contact us. We may be able to help you find a buyer.