Case Study – 1510 & 1616 St. Paul Ave

THE CHALLENGE

Lee & Associates successfully represented SMARTCAP in their first Southend industrial acquisition—a 138,788-square-foot warehouse in a highly competitive market. This property, located in an A+ core infill area in the Port of Tacoma, offered immediate access to the port, Interstate 5, and rail. Multiple offers were submitted due to the property’s prime location and high demand for industrial assets. Differentiating the buyer’s offer was essential to securing the deal.

Environmental due diligence revealed potential contamination concerns, requiring further investigation into remediation costs and solutions. The seller’s reluctance to provide concessions, combined with tight due diligence timelines, added pressure to resolve these issues efficiently.

OUR APPROACH

To differentiate SMARTCAP’s offer, Lee & Associates highlighted the buyer’s strong track record and growth within the Puget Sound region. The team prioritized in-person meetings with the seller to emphasize SMARTCAP’s commitment and long-term vision for the property, building trust and rapport.

The team maintained open communication with all parties to address environmental concerns and foster collaboration. They negotiated with the seller to share remediation costs, leveraging consultant estimates to justify concessions. Additionally, Lee & Associates partnered with a lending broker to secure optimal financing terms and worked with legal counsel to draft contingencies for environmental risks in the purchase agreement.

THE OUTCOME

SMARTCAP acquired the property at $500,000 less than the original agreed-upon price, with favorable terms that addressed the identified environmental concerns. Despite the complexities, the transaction closed within a reasonable timeline of less than eight months. The buyer secured a prime industrial asset with significant upside potential. The success of this transaction demonstrates the importance of collaboration among brokers, legal teams, and consultants in overcoming challenges and achieving a successful closing. This case underscores the value of strategic problem-solving and effective negotiation in navigating complex industrial real estate transactions.

Case Study

Case Study – 1510 & 1616 St. Paul Ave

Strategic Problem-Solving Secures a Prime Industrial Asset in Tacoma

OVERVIEW

THE CHALLENGE

OUR APPROACH

THE OUTCOME

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